REE Automotive Ltd said it has signed a non-binding memorandum of understanding with Cascadia Motion, a wholly owned subsidiary of BorgWarner Inc, to jointly develop and commercialise a compact electric drive unit (EDU) aimed at global vehicle manufacturers.
Under the agreement, the companies plan to integrate REE’s REEcorner technology with Cascadia Motion’s iM-125 inverter-motor module to create a cross-platform EDU that can be offered as an off-the-shelf solution. Cascadia Motion is expected to distribute the integrated unit through its existing commercial channels, subject to the finalisation of binding agreements.
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The collaboration is structured as a royalty-bearing arrangement that would grant Cascadia Motion exclusive, time-limited distribution rights under a phased commercial rollout. REE said it would provide access to its existing EDU assembly line, tooling, inventories and supplier network as part of the cooperation.
Joseph McHenry, general manager of BorgWarner Portland and the Cascadia Motion brand, said the integration would expand the company’s electric drivetrain portfolio. “The integration strengthens our portfolio of electric drive solutions and aligns with customer demand for faster electrification timelines,” he said.
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The proposed EDU is designed to combine a compact form factor with relatively high output. At the gearbox level, the system is expected to deliver up to 3,000 newton metres of peak torque and 100 kilowatts of peak power, with a total weight of about 54 kg. The companies said the unit is intended to meet ASIL-D functional safety standards and support secure over-the-air software updates when integrated with REE’s vehicle control architecture.
REE said the project is aligned with broader industry trends toward software-defined vehicles and simplified chassis architectures. According to industry estimates cited by the company, the global electric drive unit market is projected to grow at a compound annual growth rate of about 9% between 2025 and 2035, effectively doubling in size over that period.
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Daniel Barel, chief executive and co-founder of REE Automotive, said the agreement reflects the company’s strategy to address that growth. “This collaboration represents a natural progression in meeting global demand for software-defined, by-wire mobility solutions,” he said.
The companies said they would also assess demand for standalone REEcorner hardware and REE software products as complementary offerings for automakers pursuing fully software-defined vehicle platforms. No financial terms or development timelines were disclosed, and the MOU is subject to the negotiation of definitive agreements.