SMIL Strengthens EV Presence with Additional Stake in REE Automotive

Samvardhana Motherson International Limited (SMIL) has declared that its indirectly wholly owned subsidiary, Samvardhana Motherson Automotive Systems Group B.V. (SMRP B.V.), will be investing USD 5-7 million in Israel-based electric mobility solutions company REE Automotive Ltd.

In accordance with the regulatory disclosure of the company, the investment will be used to maintain the current ownership interest of SMRP B.V. in REE Automotive. The latter is raising additional capital for commercialisation of its growing book of orders.

After a transaction done in September 2024, SMRP B.V. owns 18.6% of the ordinary share capital of REE Automotive and 11% on a fully diluted basis.

Samvardhana Motherson International Limited (SMIL), or Motherson, is a leading auto component manufacturer with headquarters in Noida, India. The organisation began in 1975 as a small wire factory and became an international automotive supplier with facilities in around 40 countries.

Motherson produces a range of automotive parts like wiring harnesses, mirrors, door trim, lighting systems, and polymer parts for some of the world's biggest automobile companies. While the company has posted consistent revenue growth, its performance continues to be impacted by the global auto sector's cyclical trend. The firm also has R&D centers for driving innovation and sustainability initiatives.

REE Automotive is an Israeli firm that is focused on the development of modular electric vehicle (EV) platforms. Its flagship REEcorner technology integrates steering, braking, suspension, and powertrain into the wheel arch. The architecture is optimised for maximising interior space while giving more flexibility for various applications, including commercial delivery vans, autonomous shuttles, and last-mile transport solutions.

REE Automotive's REEboard platform is an adaptable base that can be utilised in most configurations of vehicles so that manufacturers can design to fit particular uses of operation. Through the use of a "by-wire" implementation of steering, braking, and drive, REE seeks to make vehicles more efficient and responsive. Its technology is designed to be used with various powertrains, such as battery-electric and fuel-cell electric powertrains.

With its fresh investment, Motherson strengthens its footprint in the rapidly expanding EV sector, in line with worldwide trends towards electric mobility and cutting-edge vehicle architecture.