Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 36

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 36
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 which could subject REE to lawsuits, product recalls, redesign efforts, or even meritless claims, all of which would be time-consuming and expensive and could harm our brand image. Also, negative public perceptions regarding the suitability of lithium-ion cells for automotive applications or any future incident involving lithium-ion cells such as a vehicle or other fire, even if such incident does not involve REE’s products, could seriously harm its business and reputation.

In addition, REE’s suppliers and strategic partners are expected to store a significant number of lithium-ion cells at their facilities. Any mishandling of battery cells may cause disruption to the operation of such facilities. A safety issue or fire related to the cells could disrupt operations or cause manufacturing delays. Such damage or injury could lead to adverse publicity and potentially a safety recall. Moreover, any failure of a competitor’s EV or energy storage product may cause indirect adverse publicity for REE and its products. Such adverse publicity could negatively affect REE’s brand and harm its business, prospects, financial condition and operating results.

Table of C ontents

The efficiency of battery usage in EVs declines over time, which may negatively impact potential customers’ decisions with regards to purchasing REE’s vehicles, if and when REE resumes manufacturing such products.

The cells used in EV battery modules degrade slowly over time, influenced primarily by the age of the cells and the total energy throughput over the life of the EV. This cell degradation results in a corresponding reduction in the vehicle’s range. REE anticipates that the range of its products will decline over time as the batteries deteriorate. Other factors such as usage, time and stress patterns may also impact the battery’s ability to hold a charge, which would decrease REE’s vehicles range before needing to recharge, if and when REE resumes manufacturing such products. Such battery deterioration and the related decrease in range may negatively influence potential customer decisions, which would negatively affect REE’s operating results and financial condition.

If OEMs or technology companies are unable to maintain and increase consumer acceptance of SDV technology, our business, results of operations, and financial condition would be adversely affected and our business would likely fail.

Our business success and future operating results will depend on the ability of OEMs and technology companies to obtain consumer acceptance for drive-by-wire vehicles. There is no assurance that either can achieve these objectives. Market acceptance of drive-by-wire depends upon many factors, including regulatory requirements, evolving safety standards, costs, and driver preferences. Market acceptance of drive-by-wire may also be adversely affected