Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 33

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 33
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 if REE’s suppliers and strategic partners were to experience delays, disruptions, capacity constraints or quality control problems in their manufacturing operations, product shipments could be delayed or rejected or REE’s potential customers and dealers could consequently elect to change product demand. These disruptions would negatively impact REE’s revenues, competitive position and reputation. In addition, REE’s suppliers and strategic partners may rely on certain state tax incentives that may be subject to change or eliminated in the future (including as a result of policy changes under the Trump Administration), which could result in additional costs and delays in production. Further, if REE is unable to successfully manage its relationship with its suppliers and strategic partners, the quality and availability of its products may be harmed. REE’s suppliers, dealers and strategic partners could, under some circumstances, decline to accept new purchase orders from or otherwise reduce their business with REE. If REE’s suppliers and strategic partners stopped manufacturing REE’s products for any reason or reduced manufacturing capacity, REE may be unable to replace the lost manufacturing capacity on a timely and comparatively cost-effective basis, which would adversely impact its operations.

REE’s reliance on its suppliers and strategic partners, as well as the establishment and operation of REE’s current and future Integration Centers, exposes it to a number of risks that are outside its control, including:

• the manufacture of certain components that will require significant costs related to non-recurring engineering and tooling costs incurred by REE’s suppliers and strategic partners the extent of which is currently unknown;

• its inability to control manufacturing yield and unexpected increases in manufacturing costs;

• interruptions in shipments if a suppliers or strategic partners are unable to complete production in a timely manner;

• its inability to control quality of finished products;

• its inability to control delivery schedules;

• its inability to control production levels and to meet minimum volume commitments to REE’s potential customer base;

• its inability to maintain adequate manufacturing capacity;

• its inability to secure adequate volumes of acceptable components at suitable prices or in a timely manner;

• its inability to establish new Integration Centers at the projected cost of $15 million to $30 million (based on whether such Integration Center is only producing REEcorners™ or is also producing the REEplatformTM) per Integration Center or due to lack of market demands;

• inability to accurately assemble products within specified design tolerances;

• delays by REE in delivering final component designs to its suppliers and strategic partners;

• its inability to implement a sufficient number of future Integration Centers in order to meet demand for REE