07:43 AM EST, 12/29/2025 (MT Newswires) -- REE Automotive ( REE ) said Monday that it signed a non-binding memorandum of understanding with BorgWarner's ( BWA ) Cascadia Motion subsidiary for the joint development of an electric drive unit, or EDU, for original equipment manufacturers.

REE said it will grant Cascadia Motion an exclusive, time-limited option to distribute an EDU that integrates REEcorner technology with Cascadia's iM-125 drive unit.

The company said it expects the distribution to be implemented through a phased commercial plan, which will also cover a royalty deal that will allow BorgWarner ( BWA ) to manufacture the EDU.

In addition, REE said it plans to grant Cascadia Motion access to its existing EDU assembly line, inventories, and supplier network, subject to negotiations over terms and conditions.