Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 34

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 34
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 products in time;

• inability to effectively manage a global network of Integration Centers; and

• other delays, backlog in manufacturing and research and development of new models, and cost overruns.

REE’s ability to manufacture a products of sufficient quality and appeal to its current and potential customer base on schedule and on a large scale is unproven, and the business plan is still evolving. REE may be required to introduce new products models and enhanced versions of existing models. To date, REE has limited experience, as a company, manufacturing, marketing and selling its products and therefore cannot assure you that it will be able to meet customer expectations. Any failure to develop such manufacturing processes and capabilities within REE’s projected costs and timelines would have a material adverse effect on its business, prospects, operating results and financial condition and could result in our inability to implement our business plan, which would result in the failure of our business and/or the restructuring of our business.

REE does not currently have any plans to establish manufacturing facilities of its own, and therefore the failure to establish long-term agreements with suppliers and strategic partners, coupled with sufficient working capital, would significantly hinder REE’s ability to manufacture its products. In addition, the manufacturing facilities of REE’s potential and strategic

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partners may be harmed or rendered inoperable by natural or man-made disasters, including earthquakes, flooding, fire and power outages, or by health epidemics, which may render it difficult or impossible for REE to manufacture its products for some period of time. The inability to manufacture REE’s products or the backlog that could develop if the manufacturing facilities of its suppliers and strategic partners are inoperable for even a short period of time, including due to delays caused by our working capital needs, may result in the loss of customers, potential customers, harm REE’s reputation, and/or result in the failure of our business and the need to seek protection from our creditors and/or the restructuring of our business.

With respect to vehicle manufacturing, REE is utilizes its UK Engineering Center and REE’s UK Integration Center in Coventry, UK for the design, validation, verification, testing and homologation of its products.

In 2022, REE built its first UK Integration Center and highly automated launch factory in Coventry, UK. The new UK Integration Center and the existing UK Engineering Center, which are strategically located next to each other, are intended to expedite REE’s strategic plans to meet anticipated global demand. The UK Engineering Center is