REE Automotive
REE Automotive, Ltd. is a commercial electric vehicle developer and manufacturer. The company's electric vehicle platform features independent interchangeable corner modules, dubbed REECorners. The corner modules are positioned directly adjacent to each wheel, and they encapsulate all of the vehicle's drive systems such as the motor, inverter, steering, brakes, and suspension. They are controlled electronically, by-wire, allowing for a completely flat platform chassis onto which custom chassis bodies can be attached.
RƎE | |
Native name | רי אוטומוטיב |
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| Formerly |
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| Type | Public |
| Nasdaq: REE | |
| Industry | |
| Founded | January 16, 2011 in Israel |
| Headquarters | |
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Key people |
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| Products |
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Production output |
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| Services |
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Number of employees | 261 (February 2023) |
| Website | https://ree.auto |
| Footnotes / references FORM 20-F for the fiscal year 2022[1] | |
The company operates a research and development center for its corner modules and its vehicle software in Israel, and an engineering and manufacturing center in the United Kingdom. Vehicle assembly, sales, and customer service operations are based in the United States.[2]: 17m25s
Founding edit
SoftWheel edit
Before changing its name to REE Automotive, the company was called SoftWheel.[3] SoftWheel was founded in 2011 by Gilad Woolf. Woolf engaged the services of Amihai Gros and the services of Ahishai Sardes of Ziv Av Engineering, who developed a wheelchair wheel with an embedded suspension system.[4] Daniel Barel joined as CEO in 2013 after learning of the company through Gros.[5] In 2014 SoftWheel raised three million dollars in an effort to enter the electric bicycle market with its in-wheel selective suspension system, which is stiff while riding on level surfaces, and becomes shock-absorbent upon impacts.[4][6][7]
Shift to the automotive industry edit
Faced with its investors potentially pulling funding and shutting down the company, SoftWheel began developing in-wheel shock absorbers for bicycles, motorcycles, and automobiles.[8] By mid-2017, the company planned to manufacture products for bicycles and develop a product for automobiles, raising a total of 15 million USD, with plans for two more assembly lines in addition to its existing ones for wheelchair wheels in Israel and the United States.[9] The company raised an additional $25 million in 2018 in an effort to pivot its business to the automotive market,[10] for a total of $40 million, partly from investors in the automotive industry such as Mitsubishi and Musashi Seimitsu.[10][11]
Daniel Barel announced the company's new name, REE, at the EcoMotion convention in June 2019, where he unveiled an automotive platform for autonomous delivery vehicles. The name-change signifies "reinventing" the car by discarding the mechanical connections between the wheels in favor of electronic by-wire control.[12]
Financing edit
The company expected to raise 436 million USD through a special-purpose acquisition company merger with 10X Capital Venture Acquisition Corp, of which $200 million were expected from 10X Capital investors. Three-quarters of the 10X Capital shares were redeemed by investors upon the merger, reducing the raised capital by about $153 million.[13] A total of $285 million were raised by the company when going public on NASDAQ on July 23, 2021, resulting in about $318 million in cash on-hand, and a valuation of about three billion dollars.[14] The CEO said that while vertical automotive companies require 20 billion dollars or more to develop their supply chain and manufacturing capabilities, the company is set to achieve serial manufacturing and commercialization of its first product line through its horizontal business alliances using its $300 million in cash.[15]
Following the merger, REE Automotive's valuation dropped significantly, reaching about $100 million in early 2023.[16] The company had no substantial revenue by February 2023, when it laid-off 31 employees which were approximately 11% of its workforce.[17] The company expects as of May 2023 that its cash runway will finance its operations past its test fleet deliveries and into the scaling-up of its business using its existing manufacturing capacity.[18] The company then plans to raise $35 million in working capital for its initial production in 2024, of which $15 million have been secured in 2023 through bank-issued credit, and then plans to raise a further $50 million in working capital for mass-manufacturing in 2025 in the United States.[19]
Business model edit
REE Automotive is structured for a capex-light business model with horizontal alliances with tier-one manufacturers.[15][20] Among its partners are American Axle, Mahindra & Mahindra, Musashi Seimitsu, and KYB.[21] The company says that unlike Tesla or Rivian who spend billions of dollars building manufacturing capacity, REE Automotive uses its partners' existing excess manufacturing capacity which allows it to quickly scale up production. The company assembles parts provided by its partners onto its corner modules and platforms at the company's manufacturing facilities.[20][22] The company aims to provide, along with its partners, "a full turn-key solution" for electric vehicle fleets, which includes the sale of full vehicles, and services such as vehicle financing and charging infrastructure. These services are meant to allow companies' fleets to transition from internal combustion engine vehicles to electric vehicles.[23]
Competition edit
Small commercial electric vehicle startups like REE Automotive attempted to fill the void in commercial EV offerings left by traditional automotive manufacturers in the late 2010s. The startup companies expected to beat the traditional manufacturers to market, or partner with them, or be acquired by them. The traditional manufacturers have since started to fill the commercial EV void, bringing the small manufacturers into direct competition with them and leading to difficulties in raising funding and generating sales to large customers.[24][25] This put small manufacturers like Arrival, Canoo, Lordstown, and ELMS in financial difficulties. REE Automotive hopes to overcome these issues with its P7 offerings and its horizontal business model.[26][25]
Technology edit
Corner modules edit
The core technology developed by REE Automotive is the corner module. These modules are located directly adjacent to each wheel, housing all of the vehicle's drive systems. The modules are controlled by-wire, eliminating the use of mechanical connections that are traditionally housed throughout the chassis, like a steering column, drive-train, and so on. This design allows for a flat platform chassis with more space for passengers or cargo, and easy replacement of each module.[12]
Prior to its initial fundraising on the stock market, the company developed five classes of corner modules for different vehicle classes up to 7 tonnes gross vehicle weight.[27] Following its fundraising shortfall, the company focused on developing and bringing a single product line to market,[15] based on the P7 corner module for up to 8.9 tonnes gross vehicle weight.
Each P7 corner module houses the following: a drive unit co-developed with American Axle consisting of an electric motor with regenerative braking, a transmission, and an inverter; steering actuators developed by Trio; double wishbone suspension with twin dampers; brakes and braking actuators co-developed with Brembo; sensors; and an electronic control unit (ECU) based on Infineon AURIX running REE Automotive software that manages all the systems. A P7 platform includes four corner modules that are controlled in tandem by a central ECU.[28][29]
Safety and security edit
Redundancy is implemented at the vehicle level and at the component level for fail-operational safety and fault detection. At the vehicle level, the central ECU can compensate for the failure of a corner module or one of its components by using the other three modules for corrective steering, braking, and propulsion. At the component level, many have built-in redundancy: the central ECU and each corner module ECU features two Infineon AURIX micro-controllers operating in a lockstep configuration, allowing for fault-detection; the ECUs are powered by redundant low-voltage batteries connected to redundant low-voltage power grids; there are redundant micro-controller communication networks; there are redundant medium voltage sources that power redundant steering actuators for each wheel; there are redundant sensors; and so on. These safety features are specified by the ISO 26262 standard level D. Vehicle cybersecurity is specified by the ISO/SAE 21434 standard and UNCE regulations 155, 156, and 157, and implemented using dedicated cryptographic modules that encrypt all communication between the ECUs and the drive system components.[30][31]
Prototypes and concept cars edit
Autonomous vehicles edit
REE Automotive presented its first public prototype at the EcoMotion convention in June 2019.[12] Early prototypes shown in 2019 were dubbed the Air, Share, and Bolder. The prototypes offered two or four wheel-end motors with varying power ratings, attached to flat chassis platforms of varying sizes. Later, similar prototypes were dubbed the P1, P2, and P4. They were designed for 1.3, 2.5, and 4.5 tonne gross vehicle weight, respectively. All the prototypes were autonomous-ready, driven entirely electronically, by-wire.[32]
An autonomous modular concept vehicle, dubbed Flatformer, was co-developed by REE Automotive and Hino Motors and displayed at the 2019 Tokyo Motor Show.[33] The Flatformer features a flat chassis platform that can have different chassis bodies interchanged autonomously on top of it, such as a body with package delivery cubbies, a body providing retail services, and a body for shuttling passengers.[34]
Autonomous vehicle developer Navya announced in April 2021 it partnered with REE for development of level 4 autonomous vehicles.[32] A concept vehicle for autonomous last-mile delivery, dubbed Leopard, was on display at CES 2022.[35] REE provided a passenger shuttle prototype in 2023 for the Belfast Harbour autonomous shuttle Harlander project.[36][37] REE and an undisclosed aerospace company partnered in 2023 for the development of an autonomous version of the P7-C truck.[38]
Production edit
Product line edit
| P7 platform | P7-B | P7-C | Proxima | |
|---|---|---|---|---|
| GVWR (lbs) | 10,000–19,500 | 14,000 | 16,000 | 19,500 |
| Payload (lbs) | max 8,000 | 4,400 | 7,000 | 8,000 |
| Cargo volume (ft3) | max 1,270 | 812 | 950 | 1,000 |
| Range estimate | 1–1.5 mi/kWh | 150 mi | 150 mi | 125 mi |
| Peak horsepower | 536 (134×4) | 536 | 536 | 536 |
| Drive | RWD, FWD, AWD | AWD | AWD | AWD |
| Steer | FWS, AWS | AWS | AWS | AWS |
| References | [39] | [40] | [41] | [42] |
REE Automotive showcased its first prototype production corner module at CES 2022.[35] Five months later, Morgan Olson demonstrated its Proxima delivery van, a class 5 truck powered by the P7 module and platform, planned for production at scale.[43][44] Two months later, the company demonstrated a P7-based class 3 box truck, dubbed the P7-B, which is expected to begin production in 2023.[45] At the ACT Expo in May 2023, the company showcased its pre-production P7-C cab chassis truck, and said it expects to begin deliveries of its P7 products in the fourth quarter of 2023.[46]
The prototype corner modules and chassis underwent road tests and durability testing, leading to production-intent prototypes suitable for 350,000 kilometres (220,000 mi) of service life[28] and designed for a baseline of 10 years or 250,000 kilometres (160,000 mi).[47] The P7 platform Microvast battery pack has been tested for a service life of 5000 to 7000 full charge cycles.[48] Platforms may be outfitted with two, three, or four 42 kWh battery packs depending on range and payload considerations.[2]: 30m27s
Company representatives presented a production-intent P7 corner module in March 2023 at Work Truck Week, saying the module is fastened to the platform on a single plane entirely from the side of the vehicle, with no special tools.[49] The platform's four corner modules are interchangeable, simplifying manufacturing and maintenance. A module may be removed and a new module fastened to the platform in 20 minutes, with a further 40 minutes of calibration for the vehicle to become operational again.[50]
Manufacturing and sales edit
The P7 assembly line was fully built-out by March 2023.[51] The assembly line is divided into automated and manual stations, with the corner modules being carried from one station to the next on autonomous robots. The assembled modules are then attached to a platform chassis, and finally a chassis body is attached. The company's first manufacturing facility was established in 2022 in Coventry, United Kingdom.[22] The first US production facility in Greater Austin, Texas, was scheduled to begin operations in 2023,[52] but the build-out of the US production capacity has been delayed as a cost-reduction measure to the fourth quarter of 2024, when mass-manufacturing is expected to commence.[19] Each facility is designed to initially produce corner modules for up to 10,000 vehicles a year with a single daily work shift.[50]
Twenty-five production-intent test vehicles have been manufactured in 2023 for internal certification validation.[51] FMVSS certification for production vehicles is scheduled to begin in mid-October 2023.[2]: 21m48s Customer vehicles are scheduled to start shipping in December 2023.[2]: 34m55s The company sold about 150 vehicles by August 2023, and expects to sell 300 vehicles in 2024 and thousands of vehicles in 2025. The company expects break-even for BOM on the sale of 300 vehicles, and positive EBITDA in 2025 with mass-manufacturing in the United States.[19]
References edit
- ^ FORM 20-F For the fiscal year ended December 31, 2022 REE Automotive Ltd., U.S. Securities and Exchange Commission
- ^ a b c d "REE Automotive: Engineering A Dream Delivery Platform", YouTube, Batteries Included Podcast (published September 20, 2023), September 11, 2023
- ^ FORM F-4, REE Automotive LTD, March 10, 2021, U.S. Securities and Exchange Commission
- ^ a b "פיתוח ישראלי פורץ דרך: גלגל חדש שעשוי לחולל מהפכה", GlobesTV, February 20, 2014
- ^ דפנה ברמלי-גולן (December 3, 2015), "כמה הזדמנויות אתה באמת מקבל לשנות את העולם?", Globes
- ^ Abigail Klein Leichman (March 18, 2014), "Leave it to Israelis to reinvent the wheel", Israel21c
- ^ Sharon Udasin (February 11, 2014), "Israeli startup reinvents the wheel", The Jerusalem Post
- ^ Paul A. Eisenstein (May 24, 2016), "Here's Why the Global Automobile Industry Is Turning to ... Israel?", NBC News
- ^ טלי ציפורי (May 4, 2017), "סופטוויל שפיתחה בולמי זעזועים לגלגלים גייסה 10 מ' דולר", Globes
- ^ a b Orbach, Meir (August 20, 2018), "SoftWheel Raises $25 Million to Reinvent the Wheel", CTECH, retrieved June 23, 2021
- ^ Omer Kabir (February 21, 2019), "In Ten Years, 30% of Cars Will Be Electric, Says SoftWheel Vice President", CTECH
- ^ a b c Brian Blum (September 9, 2019), "Israeli startup is totally reinventing how cars are built", Israel21c
- ^ יעקב צלאל (July 31, 2021), "רי אוטומוטיב / המשקיעים מכרו מניית הספאק, שווי החברה נחתך ב-50%", AutoNews.co.il
- ^ REE Automotive (August 20, 2021), FORM F-1
- ^ a b c שירי חביב ולדהורן (December 28, 2021), "מנכ"ל REE לא מתרגש מנפילת המניה: "אנחנו פה לטווח ארוך, נהיה השחקן אולי הכי גדול בשוק הרכב"", Globes
- ^ Almog Azar (January 11, 2023), "Did REE hide a $5.2 billion lawsuit from its shareholders?", CTECH
- ^ איתי פת-יה (February 9, 2023), "חברת REE הישראלית מפטרת 31 עובדים - 11% מכוח האדם שלה", TheMarker
- ^ "Truck Tech Live from ACT Expo in Anaheim", YouTube, FreightWaves, 59 minutes into the video, May 4, 2023
- ^ a b c "Q2 2023 REE Automotive Ltd Earnings Call", Yahoo Finance, August 29, 2023
- ^ a b Andrew Wade (September 2021), "A platform for success", Eureka, Mark Allen Group, vol. 41, no. 9, pp. 14–15
- ^ "REE Automotive opens UK engineering centre", Automotive Manufacturing Solutions, February 16, 2021
- ^ a b "REE Plans Integrated Assembly Strategy", Assembly Magazine, July 7, 2022
- ^ REE Automotive (May 17, 2022), First Quarter 2022 Financial Results
- ^ תומר הדר (August 23, 2022), "הענקיות התעוררו, והיצרניות הקטנות של רכבים מסחריים חשמליים בצרות", כלכליסט
- ^ a b Nick Carey; Lisa Baertlein; Ben Klayman (August 9, 2022), "Burning cash, commercial EV startups race to deliver vehicles", Reuters
- ^ תומר הדר (August 11, 2022), "האם זה מה שיציל את המניה? REE חושפת אב טיפוס לרכב משלוחים", כלכליסט
- ^ Brittany Chang (November 20, 2020), "This modular EV vehicle platform can shift into endless types of vehicles from trucks to tiny delivery vehicles — see how it works", Business Insider
- ^ a b Roger Atkins (October 11, 2022), "REE UK - EV Innovators", YouTube
- ^ Trio Motion Technology (November 29, 2022), "Independent steering control system", Controls, Drives, & Automation
- ^ Craig Cole (January 24, 2023), "REE Automotive has the EV chassis market 'cornered' thanks to its innovative drivetrain tech", EV Pulse
- ^ Scheibert, Klaus; Kostarigka, Artemis; Dannebaum, Udo; Ambekar, Abhijit; Cai, Wenlin; Heidt, Laurent (2023). "Challenges with the Introduction of X-By-Wire Technologies to Passenger Vehicles and Light Trucks in regards to Functional Safety, Cybersecurity and Availability". SAE Technical Paper Series. Vol. 1. doi:10.4271/2023-01-0581. S2CID 258033364.
- ^ a b Sagar Parikh (May 6, 2021), "Israel's REE not considering passenger electric cars before 2025", ElectricVehicleWeb
- ^ a b Greg Gardner (April 27, 2021), "Hino Motors, Ree Automotive Partner To Bring New Technologies To Commercial Vehicles", Forbes
- ^ a b Top Gear Philippines (October 29, 2019), "Feature: The Hino FlatFormer Concept is the future of delivery and service", YouTube
- ^ a b Frank Markus (January 27, 2022), "3 Cool New Electric Motor Technologies From CES 2022", MotorTrend
- ^ Louise Cullen (February 1, 2023), "Driverless bus coming to Belfast Harbour Estate", BBC News
- ^ "Project Harlander - Northern Ireland's first self driving shuttle service coming to Belfast Harbour", YouTube, BT Business in Northern Ireland, May 31, 2023
- ^ REE Automotive, (PDF), archived from the original (PDF) on May 3, 2023, retrieved May 23, 2023
- ^ REE Automotive, (PDF), archived from the original (PDF) on May 23, 2023, retrieved May 23, 2023
- ^ REE Automotive, (PDF), archived from the original (PDF) on May 23, 2023, retrieved May 23, 2023
- ^ REE Automotive, (PDF), archived from the original (PDF) on May 23, 2023, retrieved May 23, 2023
- ^ Scooter Doll (July 25, 2022), "EAVX, Morgan Olson, and REE Automotive share live demonstrations of Proxima electric van", electrek
- ^ Alan Adler (July 29, 2022), "Truck Tech: Cutting corners edition", FreightWaves
- ^ Scooter Doll (August 11, 2022), "REE Automotive unveils Class 3 box truck powered by its P7 electric chassis and REEcorners", elektrek
- ^ "REE Automotive unveils P7-C Chassis Cab; new addition to P7 electric truck lineup", Green Car Congress, May 2, 2023
- ^ Scott Hoffman (July 7, 2023), "Dr. Peter Dow - VP of Engineering at REE Automotive", Munro Live Podcast (published August 11, 2023), 46 minutes and 29 seconds into the interview
- ^ "Fireside Chat w/James West Sustainable Technologies and Clean Energy Analyst at Evercore", Microvast, 12 minutes and 14 seconds into the interview, June 12, 2023
- ^ Mike Oakes (March 14, 2023), "REEvisiting with REE Automotive plus the Rebadged Mullen Class 3 truck - Work Truck Week", Munro Live
- ^ a b Craig Cole (March 11, 2023), "REE's Modular EV Chassis Could Corner the Market - 2023 Work Truck Week", EV Pulse
- ^ a b REE Automotive (March 16, 2023), 4Q22 Shareholders Letter
- ^ Justin Sayers (May 16, 2022), "REE Automotive's UK electric vehicle factory offers glimpse of what it'll do in Pflugerville", Austin Business Journal