REE Automotive raises $45 mln, announces partnership with Motherson Group (updated)

Samvardhana Motherson International

16/09/2024 14:00

(Adds share movement in paragraph 2)
       Sept 16 (Reuters) - REE Automotive  REE.O  has raised
over $45 million in a fresh funding round led by M&G Investment
and signed a supply chain partnership with Indian auto parts
maker Samvardhana Motherson  SAMD.NS , the electric truck maker
said on Monday.
    Shares of the Israel-based company jumped more than 12% in
premarket trading. 
    REE is looking to streamline its supply chains and bring
down the high costs involved in manufacturing costly electric
vehicles, as EV startups weather an uncertain economy and
sluggish demand.
    The company has signed direct share purchase agreements
under which multiple investors, including M&G Investments,
Motherson, and Varana Capital, will buy more than 11 million REE
shares at $4.122 per share.
    The $15 billion-worth Motherson, one of India's largest auto
parts makers, supplies parts to domestic and global automakers
such as Maruti Suzuki  MRTI.NS  and Mercedes-Benz  MBGn.DE .
    As part of the supply chain partnership, Motherson will
manage sourcing and supply chain logistics for all vehicle
parts, and support the assembly of the REECorner and REE P7
electric truck models.
    It will also nominate a director to join REE’s board of
directors.
    Following the offering's close on Sept. 19, M&G will hold
around 16% of REE's outstanding shares, Motherson will hold
around 19% on a non-diluted basis and Varana Capital will hold
8%. 
    With the Motherson collaboration, REE expects to boost
production to meet growing demand and fulfill fleet orders from
multi-national customers, the company said, adding that it will
use the funds for general working capital.  
    

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Janane
Venkatraman)
 ((Zaheer.Kachwala@thomsonreuters.com;))