Sept 16 (Reuters) - REE Automotive ( REE ) has raised

over $45 million in a fresh funding round led by M&G Investment

and signed a supply chain partnership with Indian auto parts

maker Samvardhana Motherson, the electric truck maker

said on Monday.

The Israel-based REE is looking to streamline its supply

chains and bring down the high costs involved in manufacturing

costly electric vehicles, as EV startups weather an uncertain

economy and sluggish demand.

The company has signed direct share purchase agreements

under which multiple investors, including M&G Investments,

Motherson, and Varana Capital, will buy more than 11 million REE

shares at $4.122 per share.

The $15 billion-worth Motherson, one of India's largest auto

parts makers, supplies parts to domestic and global automakers

such as Maruti Suzuki and Mercedes-Benz.

As part of the supply chain partnership, Motherson will

manage sourcing and supply chain logistics for all vehicle

parts, and support the assembly of the REECorner and REE P7

electric truck models.

It will also nominate a director to join REE's board of

directors.

Following the offering's close on Sept. 19, M&G will hold

around 16% of REE's outstanding shares, Motherson will hold

around 19% on a non-diluted basis and Varana Capital will hold

8%.

With the Motherson collaboration, REE expects to boost

production to meet growing demand and fulfill fleet orders from

multi-national customers, the company said, adding that it will

use the funds for general working capital.