REE Automotive and BorgWarner's Cascadia Motion to Power Next-Gen EVs

TEL AVIV, Israel – December 29, 2025 – In a significant move to streamline the development of electric vehicles, Israeli automotive technology firm REE Automotive has announced a strategic partnership with Cascadia Motion, a wholly owned subsidiary of the global mobility giant BorgWarner Inc. The two companies have signed a non-binding Memorandum of Understanding (MOU) to jointly develop, manufacture, and commercialize a new generation of compact Electric Drive Units (EDUs) for the global original equipment manufacturer (OEM) market.

This collaboration aims to integrate REE's revolutionary REEcorner™ technology with Cascadia Motion's proven inverter-motor modules. The resulting product is intended to be a powerful, compact, and ready-to-integrate solution that could dramatically shorten development cycles for automakers and accelerate the industry-wide transition to electrification. The partnership leverages REE's expertise in software-defined, by-wire vehicle control systems and BorgWarner's extensive manufacturing prowess and market reach, signaling a new phase in the evolution of EV platforms.

A Modular Approach to Accelerate EV Production

The core of the collaboration is the creation of a new, off-the-shelf EDU that combines Cascadia Motion's iM-125 drive unit—a high-performance motor and inverter—with the advanced packaging and functionality of REEcorner™ technology. This integrated unit is designed to provide OEMs with a cross-platform solution that simplifies vehicle design and assembly, a critical factor in a highly competitive market where speed and efficiency are paramount.

By offering these drive units directly through CascadiaMotion.com, the companies plan to democratize access to advanced EV propulsion systems. This approach allows automakers, from established giants to emerging startups, to bypass years of complex development and integration work typically associated with creating a new electric powertrain. The proposed unit, weighing just 54 kg, is designed to deliver impressive performance, including a peak power of 100 kW and a peak torque of 3000 Nm at the gearbox output.

“Integrating Cascadia Motion’s iM-125 drive unit with REEcorner technology bolsters our portfolio of off-the-shelf electric drive solutions, providing our customers with even more flexibility in their electrification programs,” said Joseph McHenry, General Manager of BorgWarner Portland and the Cascadia Motion brand. “This collaboration reflects our commitment to delivering innovative, ready-to-integrate drive units that help OEMs reduce development time and streamline vehicle launch.”

The Strategic and Financial Framework

While the current MOU is non-binding, it outlines a clear, phased commercial plan for the partnership. The arrangement is expected to evolve into a definitive, royalty-bearing agreement that would see BorgWarner, through Cascadia Motion, manufacture the co-developed EDU. As part of the deal, REE intends to grant Cascadia Motion an exclusive, time-limited option to distribute the uniquely packaged drive unit globally.

To facilitate a rapid production ramp-up, REE also plans to provide Cascadia Motion with access to its existing EDU assembly line, specialized tooling, current inventories, and established supplier network. This sharing of resources is subject to the negotiation of final terms but represents a significant commitment to getting the product to market quickly and at scale. The agreement underscores a symbiotic relationship where REE provides the foundational by-wire and software-defined architecture, and BorgWarner brings its century-plus legacy of manufacturing excellence and global supply chain management to the table.

However, both companies have noted that the successful commercialization of the product depends on the execution of definitive agreements, customer demand, and successful technical development. The forward-looking nature of the announcement carries inherent risks, but the strategic alignment suggests a strong motivation to finalize the terms and bring the product to market.

Tapping a Multi-Billion Dollar Market

This partnership arrives at a pivotal moment for the electric vehicle industry. According to industry research estimates cited by the companies, the global market for Electric Drive Units is projected to experience substantial growth, expanding at a compound annual growth rate (CAGR) of approximately 9% between 2025 and 2035. These forecasts predict that the overall market size for EDUs will effectively double by 2035, driven by surging consumer demand for electric vehicles and tightening emissions regulations worldwide.

By combining their strengths, REE and Cascadia Motion are positioning themselves to capture a significant share of this expanding market. The availability of a scalable, advanced, and near-term EDU solution could prove highly attractive to OEMs looking to either launch new EV models or electrify existing vehicle lines without committing to the immense capital expenditure of in-house powertrain development. The collaboration aims to address a critical bottleneck in the industry, enabling a broader and faster rollout of diverse electric vehicles.

The Software-Defined Future of Vehicle Architecture

Beyond the immediate hardware, this partnership is a testament to the automotive industry's accelerating shift toward the Software-Defined Vehicle (SDV). REE's core technology is a purpose-built SDV foundation that replaces complex, legacy mechanical and hydraulic systems with a centralized, by-wire electronic architecture. The REEcorner™ is the physical manifestation of this philosophy, packing steering, braking, suspension, and an electric motor into a single, compact module that fits into the wheel arch.

This by-wire control—removing mechanical linkages to the steering wheel and brake pedal—is managed by REE's advanced zonal SDV architecture. This system uses a network of controllers, including the REEcenter ECU and REEzonal ECUs, to manage all vehicle dynamics. This not only simplifies vehicle design and reduces wiring but also unlocks new possibilities, such as completely flat chassis platforms for maximum interior and battery space. Furthermore, it enables superior functional safety levels, with the new EDU intended to support ASIL-D, the highest classification for automotive safety integrity.

“We believe that this MOU with Cascadia Motions represents a natural progression of our three-year collaboration and reinforces our mission to accelerate the industry’s transition to software-defined, by-wire mobility,” said Daniel Barel, CEO and co-founder of REE Automotive. “We believe this collaboration positions us to meet global demand at scale while laying the groundwork for next-generation, fully by-wire solutions.”

The companies also plan to evaluate OEM demand for more comprehensive solutions, including standalone REEcorner™ units and REE's suite of software products. This suggests a long-term vision where the EDU is just the first step in offering a complete, future-proofed platform that allows vehicles to be continuously improved and adapted throughout their lifespan via secure over-the-air (OTA) updates.