REE Automotive has announced a strategic, non-binding memorandum of understanding (MOU) with Cascadia Motion, a wholly owned subsidiary of BorgWarner, to collaborate on the development and commercialization of a next-generation electric drive unit (EDU) for electric vehicle (EV) platforms.
Under the MOU, the companies plan to jointly develop a compact EDU that integrates Cascadia Motion’s iM-125 electric motor and inverter with REEcorner technology. The EDU is intended to support global OEM electrification programs, with a focus on accelerating EV development timelines through a modular, cross-platform design suitable for commercial and specialty vehicle applications.
As part of a phased commercial plan, REE would grant Cascadia Motion an exclusive, time-limited option to distribute the jointly developed EDU under a royalty-bearing agreement. The EDU is designed to be compatible with REE’s vehicle control units and software-defined vehicle (SDV) architecture, supporting high levels of functional safety, including ASIL-D, and enabling secure over-the-air (OTA) software updates.
REE also plans to provide Cascadia Motion access to its existing EDU assembly line, tooling, inventories, and supplier network in North America, subject to final agreement, to support near-term manufacturing and commercialization of the combined EDU.
Industry research cited by the companies indicates that the global EDU market is expected to grow at a compound annual growth rate of approximately 9% from 2025 through 2035, driven primarily by increased adoption of battery-electric vehicles. The companies believe this collaboration positions them to offer OEMs a scalable EDU solution with near-term availability for EV programs.
In addition to the EDU-focused effort, the parties plan to evaluate demand for broader SDV solutions, including standalone REEcorner units and REE’s software products. REE’s SDV architecture is based on a centralized, zonal control model that reduces wiring complexity and supports software-defined control of vehicle dynamics, chassis systems, body functions, safety systems, and connectivity.
The architecture is designed to integrate with existing vehicle systems and support ongoing software updates over the vehicle lifecycle.
The MOU reflects continued interest among OEMs in EV-native, software-defined architectures that reduce development time and support flexible vehicle configurations, including low and flat chassis designs and enhanced functional safety. By combining REE’s by-wire SDV platform with Cascadia Motion’s electric propulsion systems, the companies aim to support OEMs transitioning toward scalable, EV platforms intended for long-term software and hardware evolution.
Filed Under: Electric Motor, Software, Technology News