Magna International Inc. will develop a modular electric powered motor vehicle with Israeli startup REE Automotive, assisting the Canadian car supplier and contract maker muscle mass more into a rising area of EV players.
The businesses agreed to jointly design, engineer and establish the EVs using REE’s system, the skateboard-like base that supports unique vehicle styles on major. The vehicles can be designed to the actual requirements of “global technologies organizations and e-mobility players” when speeding their entry into the sector, Magna and REE claimed in a assertion.
“Many big tech providers are very much intrigued in developing mobility products and services and options that are worldwide, major. But they really do not exist these days,” REE Chief Government Officer Daniel Barel claimed in an job interview Sunday. “That car or truck can have any model that the manufacturer owner needs, but it is driven by REE.”
The place and timeline for generation, as perfectly as economical phrases, weren’t disclosed. Barel claimed the providers would split any revenues generated. The startup has signed agreements representing orders for about 260,000 vehicles that would use REE’s platform, Barel explained.
Magna, which has been touted as a possible husband or wife for a self-driving automobile from Apple Inc., has previously created cars beneath contract for BMW AG and Jaguar Land Rover. Previous yr it shaped a joint venture with Korea’s LG Electronics Inc. to make EV powertrains, aiming to place alone for the boom in electric autos. Magna is the world’s third-biggest automobile provider, creating anything from chassis and automobile seats to sensors and application.
The Aurora, Ontario-based mostly firm also landed a offer with Fisker Inc. in Oct to make the electric powered Ocean SUV, which will be constructed in a Magna plant in Graz, Austria, starting in late 2022. It’s also expanding its manufacturing footprint in China, the biggest EV sector, by constructing the ArcFox Alpha-T for Beijing Automotive Group Co. — the very first motor vehicle it has assembled exterior of Europe.
The deal reinforces the elevated prospect for Magna in electrical autos, Credit history Suisse analyst Dan Levy, who has an outperform ranking on the inventory, wrote in a observe to shoppers on Monday.
Tel Aviv-centered REE is 1 of a flood of EV and battery-connected startups that have a short while ago agreed to go community by special goal acquisition providers, agreeing in February to merge with 10X Funds Enterprise Acquisition Corp. The offer valued the combined entity at around $3.1 billion. Magna was a single of the personal expenditure in public equity investors that participated in the offer.
Magna was tiny adjusted at C$112.08 at 10:35 a.m. in Toronto. Given that the company declared the partnership with Fisker on Oct. 15, the stock had soared 64% by way of April 9. Shares of 10X Capital had been minimal improved at $10.07 in New York.
REE’s technological know-how integrates all of the common, main components for an EV — like the powertrain, suspension and braking — into arched wheel-perfectly assemblies. It then matches all those on to the four corners of a flat, modular chassis that can accommodate a huge vary of battery packs and automobile sorts.
The Magna agreement is not REE’s first these kinds of offer. In August, the startup set up a partnership to create electric powered industrial automobiles with India’s Mahindra & Mahindra.
(Updates with analyst’s remark in seventh paragraph)