Key Takeaways:
- REE Automotive Ltd. has signed a non-binding Memorandum of Understanding (MOU) with Cascadia Motion, a subsidiary of BorgWarner Inc., to manufacture and commercialize a new generation of compact electric drive units (EDUs) integrating REEcorner technology.
- The global EDU market is expected to double by 2035, growing at a compound annual growth rate (CAGR) of approximately 9% from 2025 through 2035.
- The new EDU product will be jointly developed by Cascadia Motion and REE, and is expected to be available as an off-the-shelf product at CascadiaMotion.com.
- The collaboration aims to provide OEMs with a scalable, advanced EDU solution with near-term availability, and positions both companies to meet global demand at scale.
- The MOU builds on REE’s momentum as OEMs increasingly seek modern, software-defined architectures that shorten development cycles and unlock new vehicle configurations.
Introduction to REE Automotive and Cascadia Motion
REE Automotive Ltd. is an automotive technology company that develops and produces software-defined vehicle (SDV) technology designed to manage vehicle operations and features through proprietary software. Cascadia Motion, a wholly owned subsidiary of BorgWarner Inc., is a leading provider of electric drive units and other propulsion systems. The two companies have announced a strategic non-binding Memorandum of Understanding (MOU) to cooperate on the manufacturing, commercialization, and sale of a next-generation electric drive unit (EDU) based on REEcorner technology for global OEM electrification programs.
The New Electric Drive Unit (EDU)
The new EDU product will be jointly developed by Cascadia Motion and REE, and will integrate Cascadia Motion’s iM-125 drive unit (motor and inverter) with REEcorner technology. The combined EDU is designed to be compact and cross-platform, and is intended to help OEMs accelerate EV development. The new EDU will be available as an off-the-shelf product at CascadiaMotion.com, and is expected to support higher levels of functional safety, including ASIL-D, and improve efficiency and time to market through secure, stable over-the-air (OTA) updates.
Market Growth and Demand
According to industry research estimates, the global EDU market is expected to double by 2035, growing at a compound annual growth rate (CAGR) of approximately 9% from 2025 through 2035. This growth is driven by increasing demand for electric vehicles, and the need for advanced EDU solutions that can support the development of software-defined vehicles. REE believes that this arrangement positions both companies to offer OEMs a scalable, advanced EDU solution with near-term availability, and to meet global demand at scale.
Collaboration and Benefits
The MOU builds on REE’s momentum as OEMs increasingly seek modern, software-defined architectures that shorten development cycles and unlock new vehicle configurations. The collaboration between REE and Cascadia Motion is expected to provide OEMs with a range of benefits, including improved functional safety, increased efficiency, and reduced development time. The companies also plan to evaluate demand for complete software-defined vehicle solutions, including standalone REEcorner units and REE’s software products, which can supplement this offering or present additional capabilities for OEMs.
REE’s SDV Technology
REE’s SDV technology is a purpose-built foundation that replaces legacy domain systems with centralized, zonal control that simplifies design, cuts wiring, and accelerates development of software-defined vehicles. REE’s zonal architecture combines the REEcenter ECU, REEzonal ECUs, and REEgateway into a high-performance network that unites software packages of advance vehicle dynamic, chassis control, body control, autonomy integration, safety systems, and connectivity. This integrated approach is designed to simplify complexity, accelerate development, and future-proof vehicle programs that aim to integrate seamlessly into diverse commercial OEM plans.
Conclusion and Future Outlook
The collaboration between REE and Cascadia Motion is a significant development in the automotive industry, and is expected to have a major impact on the growth of the global EDU market. The new EDU product is expected to be available as an off-the-shelf product at CascadiaMotion.com, and is intended to support higher levels of functional safety, including ASIL-D, and improve efficiency and time to market through secure, stable over-the-air (OTA) updates. As the demand for electric vehicles continues to grow, REE and Cascadia Motion are well-positioned to meet the needs of OEMs and to play a major role in the development of software-defined vehicles.
