Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 32

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 32
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If and when REE resumes manufacturing, it does not know whether its suppliers or strategic partners will be able to develop efficient, automated, low-cost production capabilities and processes and reliable sources of component supply, that will enable REE to meet the quality, price, engineering, design and production standards, as well as the production volumes, required to successfully deliver REE’s products on an anticipated timeframe, or at all. Even if REE and its suppliers and strategic partners are successful in developing the initial production processes, developing future high volume production capability, and reliably sourcing the component supply, REE does not know whether it will be able to do so in a manner that avoids significant delays and cost overruns, including those that result from factors beyond its control such as problems with suppliers and strategic partners or dealing with force majeure events (which include tariffs from the Trump Administration and retaliatory measures by its trading partners), or that meets its products commercialization schedules or that satisfies the requirements of its potential customer base. Any failure to develop such production processes and capabilities within REE’s projected costs and timelines could have a material adverse effect on its business, prospects, financial condition and operating results.

If and when REE resumes manufacturing, REE’s development of an outsourced manufacturing business model may not be successful, which could harm its ability to deliver products and recognize revenue.

If and when REE resumes manufacturing, its vehicle business would depend on its ability to develop, manufacture and assemble its products. REE has outsourced the manufacturing of its products in collaboration with a contract manufacturer ( i. e., Roush Industries), strategic partner ( i. e., Motherson), and strategic suppliers. If and when REE resumes manufacturing, REE plans to assemble its products at REE’s current and future Integration Centers. If REE is unable to negotiate and finalize all of its agreements with suppliers and/or strategic partners and have sufficient working capital to support its expected production, including any future initial deliveries, it will not be able to produce any products and will not be able to generate any revenue in connection therewith, or the products may become more expensive to deliver with a higher bill of materials, which would have a material adverse effect on its business, prospects, operating results and

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financial condition. In addition, the utilization of future Integration Centers for the assembly of REE products is an untested business strategy and there is no guarantee that the strategy will be successful or profitable.

Additionally, if and when REE resumes manufacturing,