REE Automotive Ltd. has entered a non-binding Memorandum of Understanding with Cascadia Motion, a wholly owned subsidiary of BorgWarner Inc., to jointly develop, manufacture, and commercialize a next-generation compact electric drive unit. The EDU integrates REEcorner technology with Cascadia Motion’s iM-125 inverter-motor module. This collaboration targets global OEM electrification programs and positions the combined unit as an off-the-shelf solution available through Cascadia Motion.
Highlights
- Strategic MOU establishes cooperation for a compact, cross-platform EDU combining REEcorner and Cascadia Motion iM-125 modules.
- Royalty-bearing arrangement grants Cascadia Motion exclusive, time-limited distribution rights under a phased commercial plan.
- Market growth projection: Global EDU market expected to achieve 9% CAGR from 2025–2035, doubling in size by 2035.
- Performance specifications at gearbox output include 3000 Nm peak torque, 100 kW peak power, and 54 kg total weight.
- Combined solution targets ASIL-D functional safety and secure OTA updates.
Collaboration Details and Commercial Structure
The MOU outlines joint development of a uniquely packaged EDU that pairs Cascadia Motion’s proven iM-125 drive unit with REE’s corner module technology. REE will grant Cascadia Motion manufacturing rights under a royalty-bearing agreement and provide access to its existing EDU assembly line, tooling, inventories, and supplier network, subject to final negotiated terms.
Cascadia Motion intends to offer the integrated EDU as a ready-to-integrate, off-the-shelf product on CascadiaMotion.com. This approach supports OEMs seeking to reduce development time and accelerate vehicle launches while maintaining flexibility across multiple platforms.
Joseph McHenry, General Manager of BorgWarner Portland and the Cascadia Motion brand, stated that the integration strengthens the portfolio of electric drive solutions and aligns with customer demands for faster electrification timelines.
Technical Specifications of Integrated EDU
The combined EDU leverages REEcorner architecture with the following performance metrics measured at gearbox output:
- Motor Type: Permanent Magnet
- Voltage: 400 V
- Peak Torque (30s): 3000 Nm
- Peak Power: 100 kW
- Maximum Speed: 835 rpm
- Maximum Continuous Torque: 2150 Nm
- Maximum Continuous Power: 57 kW
- Gear Ratio: 19.17
- Cooling: Water-Glycol (8 LPM @ 65°C)
- Weight: 54 kg
These specifications enable a compact, high-torque solution suitable for diverse commercial vehicle applications.
Software-Defined Vehicle Integration and Functional Safety
The EDU, when paired with REE’s vehicle control units, supports ASIL-D functional safety levels. Secure, stable over-the-air updates enhance long-term efficiency and adaptability.
REE’s zonal SDV architecture centralizes control through the REEcenter ECU, REEzonal ECUs, and REEgateway, creating a high-performance network for advanced vehicle dynamics, chassis control, body functions, autonomy integration, safety systems, and connectivity. This design reduces wiring complexity and accelerates development of software-defined platforms.
The companies also plan to assess demand for standalone REEcorner units and REE software products as complementary offerings for OEMs pursuing full SDV implementations.
Market Context and Strategic Positioning
Industry research estimates indicate the global electric drive unit market will grow at approximately 9% CAGR from 2025 through 2035, effectively doubling in size due to rising electric vehicle demand. REE views this collaboration as a scalable response to that growth, building on a three-year relationship with Cascadia Motion.
Daniel Barel, CEO and co-founder of REE Automotive, described the MOU as a progression toward meeting global demand for software-defined, by-wire mobility solutions.
The partnership aligns with OEM trends favoring modern architectures that shorten development cycles, enable low and flat chassis designs, improve functional safety, and support continuous OTA improvements.
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