Magna To Manufacture Modular EV With Israeli Startup REE: Bloomberg

Canadian auto supplier and contract manufacturer Magna International Inc MGA jumps the electric vehicle (EV) bandwagon by devising a modular EV with Israeli EV and battery-related start-up REE Automotive, Bloomberg reports.
The production location, timeline, and financial terms were not disclosed. The companies have proposed to split any future revenue.
REE inked close to 260,000 vehicle order agreements.
Magna is credited for contractual car manufacturing with Bayerische Motoren Werke AG BMWYY and Tata Motors Ltd TTM-owned Jaguar Land Rover. Magna is expected to become Apple Inc’s AAPL autonomous driving partner. Last year, Magna partnered with Korea’s LG Electronics Inc LGEIY LGEJY to manufacture EV powertrains.
Magna partnered with Fisker Inc FSR in Oct. to manufacture an electric Ocean SUV in a Magna plant in Graz, Austria. The project is estimated to commence in late 2022. Magna was also building Beijing Automotive Group Co’s ArcFox Alpha-T.
The Magna stock has jumped 70% since its Fisker partnership announcement on Oct. 15.
REE has agreed to merge with a special purpose acquisition company (SPAC) 10X Capital Venture Acquisition Corp VCVC in Feb. under a deal valued at $3.1 billion. Magna was one of the investors in the private investment in public equity (PIPE) deal.
In August, REE forged a partnership with India’s Mahindra & Mahindra to develop electric commercial vehicles.
Price action: MGA shares are trading higher by 0.25% at $89.72 in the premarket session on the last check Monday.

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