American Axle, Israel's REE to develop electric-vehicle propulsion system (updated)
07/05/2021 13:05
(Adds details on American Axle's agreement with U.S. Department
of Energy)
May 7 (Reuters) - Automobile parts maker American Axle &
Manufacturing AXL.N and Israel's REE Automotive will jointly
develop an electric propulsion system to tap accelerating demand
for battery-powered vehicles, the companies said on Friday.
The propulsion system, which powers automotive vehicles,
will incorporate American Axle's electric drive units into Ree's
technology that integrates all the traditional vehicle chassis
components into the arch of the wheel.
The electric drive units will be developed by American Axle
in Detroit and prototypes will be delivered by the end of the
year. Further terms of the deal were not disclosed.
"This agreement to provide electric drive technology ... is
an important step in growing AAM's electric propulsion
business," said American Axle Chief Executive Officer David
Dauch.
Earlier this year, REE agreed to go public through a merger
with blank-check company 10X Capital Venture Acquisition Corp
VCVC.O in a deal that valued the electric-vehicle technology
startup at around $3.6 billion. urn:newsml:reuters.com:*:nL4N2K93JI
Investors in the transaction included Mahindra and Mahindra
MAHM.NS and auto supplier Magna International MG.TO .
Separately, American Axle said it will receive $5 million in
funding from the U.S. Department of Energy to advance the
development of its electric drive technology. urn:newsml:reuters.com:*:nPn1NZSRpa
(Reporting by Shreyasee Raj in Bengaluru; Editing by Devika
Syamnath)
((Shreyasee.Raj@thomsonreuters.com;))