REE Automotive, an automotive technology company that develops software-defined vehicle (SDV) technology solutions, announced a strategic non-binding Memorandum of Understanding with Cascadia Motion (a wholly owned subsidiary of BorgWarner). The MOU outlines cooperation across manufacturing, commercialisation, and sale of a next-generation electric drive unit (EDU) based on REEcorner technology for global OEM electrification programs. The new EDU product will be jointly developed by Cascadia Motion and REE.
As part of an expected phased commercial plan, including a royalty-bearing agreement, REE would grant Cascadia Motion an exclusive, time-limited option to distribute a uniquely packaged EDU that integrates Cascadia Motion’s iM-125 drive unit (motor and inverter) with REEcorner technology. Together, the companies aim to offer a compact, cross-platform EDU that is designed to help OEMs accelerate EV development. The new EDU combined with REE’s vehicle control units is intended to support higher levels of functional safety, including ASIL-D, and to improve efficiency and time to market through secure, stable over-the-air (OTA) updates.
REE also plans to provide Cascadia Motion with access to its existing EDU assembly line, tooling, inventories, and supplier network to support manufacturing of the combined EDU Units, subject to negotiation of final terms and conditions.
“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.”
This arrives at a time when, according to certain industry research estimates and publications, the global EDU market is expected to grow by a compound annual growth rate (CAGR) of approximately 9% from 2025 through 2035. These publications further expect the EDU market size to double by 2035 due to increased demand for electric vehicles. REE believes that this arrangement positions both companies to offer OEMs a scalable, advanced EDU solution with near-term availability.
“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.”
In addition to the EDU-focused product offering, the parties plan to evaluate demand for complete SDV 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 is a purpose-built foundation that replaces legacy domain systems with centralised, 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 advanced vehicle dynamics, 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.
The MOU builds on REE’s momentum as OEMs increasingly seek modern, software-defined architectures that shorten development cycles and unlock new vehicle configurations, such as low and flat chassis design, improved functional safety, and on-going secure and stable OTA updates. REE’s advanced zonal SDV architecture integrates seamlessly with legacy systems to improve safety, performance, and reliability. By combining this architecture with Cascadia Motion’s propulsion systems, the companies believe they are positioned to support OEMs transitioning toward software-defined vehicles built for continuous improvement and long-term adaptability.
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