Israeli developer of a modular platform for electric vehicles REE, will go public in the US through a merger with a special purpose acquisition company (SPAC) a “blank check” shell company 10X Capital Venture Acquisition Corp.
The deal gives the combined entity a value of about $3.6 billion after a transaction which includes $300 million private investment in public equity, or PIPE, according to a report by Bloomberg News. REE’s existing investors will own more than 80% of the combined company.
10X Capital shares soared about 50% after the announcement.
Tel Aviv-based REE (former name SoftWheel), co-founded by Daniel Barel and Ahishay Sardes describes itself as reinventing the e-mobility.
REE has developed the next-generation EV platform which is completely flat, scalable, and modular. It providing customers “full design freedom to create the broadest range of EV and autonomous vehicles for current and future applications, including last-mile delivery, MaaS, light to medium-duty EV logistics and robo taxis.”
REE has developed two core innovations. Its REEcorner integrates all traditional vehicle components (steering, braking, suspension, e-motor) into the arch of the wheel.
The REEcorner integrates all drive components into the arch of the wheel. Each corner is completely independent and powered by the company’s REEboard ECU which controls its advanced x-by-wire technology.
The company says its platform can be used for battery or fuel cell-powered vehicles.
REE will supply crucial parts to the electric vehicles industry that don’t have the full components in-house. This way automakers can bring their models to market quicker and at a fraction of the cost, Barel told Bloomberg.
In the past few months, REE has announced cooperation agreements with Mitsubishi, Mahindra, and other auto industry companies. It alsomoving forward for serial production of its platform.