Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 86

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 86
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 costs and time to market for such vehicles for our customers.

Our approach of “complete not compete” allows original equipment manufacturers, or OEMs, to license our technology in order to design and build vehicles reliant upon our SDV technology to their specific requirements and needs. Our technology and collaborative application programming interface, or API, approach allows OEMs to connect their current and future operating systems and application layers having significant input on the design of the system according to their individual needs. In addition, our software flexibility allows delivery and logistics fleets, dealers, Mobility-as-a-Service, or MaaS, providers and others to incorporate their Voice of the Customer, or VoC, input into new vehicle designs and applications. Incorporation of this voice allows these customers to design vehicles that are better tailored to the specific needs of their end-user base and the market in which they service.

Our SDV technology is a combination of software, electrical hardware, and by-wire technology.

Recent Developments

Delay of Vehicle Production

Due to what we believe to be unforeseen and unpreventable circumstances surrounding U. S. trade policy with respect to tariffs and trade wars, we have temporarily paused our production plans with respect to our P7-S Strip Chassis and P7-C Chassis Cab and Cutway Chassis products until the situation stabilizes. Once we better understand the final determinations with respect to country-specific tariffs and trade deals, should they materialize, we would expect to address our next steps with respect to such production.

As further described in our Go-to-Market strategy section under Item 4. B, we expect instead to advance our Phase 2 software business and therefore focus our efforts on securing design wins and partnerships with OEMs and technology companies with respect to the integration of our SDV technology products into their vehicles.

Non-Binding Memorandum of Understanding with Global Technology Company

On March 18, 2025, we announced that we had entered into a non-binding memorandum of understanding, or March MOU, with a global technology company developing and marketing new mobility solutions for passenger and freight transport. The March MOU outlines the parties’ intent to develop and produce multiple thousands of L4 autonomous shuttles. The parties are working toward a definitive strategic collaboration agreement by year-end 2025, which is estimated to generate up to $770 million in potential revenues over the next five years (if converted into a binding agreement). Assuming the entry into a definitive agreement, we expect the first production of vehicles as early as 2027.

2024 Annual