REE Automotive signs $770 million deal for vehicle technology

Israeli startup REE Automotive announced on Tuesday that it plans to earn up to $770 million by 2030. This revenue will come from a licensing deal with an undisclosed company. REE will provide technology designed for autonomous vehicles. The company has already signed a preliminary agreement and expects to finalize it soon. REE has avoided heavy manufacturing costs, which have troubled other electric vehicle startups. Instead, it focuses on licensing its technology to others. REE's technology allows vehicles to be controlled mainly through software. This makes it easier to integrate self-driving features and simplifies wiring systems by organizing functions. The startup aims to begin earning revenue from software and services later this year. Currently, REE has order backlogs worth $150 million, and the new deal could increase that amount to nearly a billion. CEO Daniel Barel mentioned that shifting to software and services will improve their profit margins. The unnamed customer, which develops mobility solutions, plans to use REE's technology to create thousands of self-driving passenger vehicles starting in 2027.