BorgWarner’s wholly-owned subsidiary Cascadia Motion has entered into a strategic memorandum of understanding with REE Automotive to co-develop and commercialize a next-generation electric drive unit (EDU). Under the phased agreement, Cascadia Motion secures an exclusive, time-limited distribution right for an integrated EDU that combines its iM-125 motor-inverter with REE’s patented REEcorner technology. The agreement contemplates royalty payments to REE and includes access to Cascadia Motion’s global OEM customer network, positioning the unit for rapid deployment across multiple vehicle platforms.

The collaboration will leverage Cascadia Motion’s existing production capabilities, including its assembly lines, tooling, inventory and supplier ecosystem. Initial development will focus on a compact, cross-platform EDU designed to meet advanced functional safety requirements (ASIL B and above). Prototypes are expected within nine months of closing, with serial production slated to begin in late 2026. The market for integrated EDUs is forecast to grow at a 15% compound annual growth rate, potentially doubling in size by 2035, according to industry research.

By integrating zonal vehicle control units and x-by-wire interfaces, the Cascadia-REE EDU aims to accelerate OEM electrification programs and reduce vehicle integration cycle times by up to 20%. Cascadia Motion plans to offer bundled hardware-software packages to key commercial vehicle and light-duty customers, targeting annual sales of 5,000 units by 2027. Management expects the joint solution to contribute more than $50 million in revenue to BorgWarner’s e-Propulsion segment over the next three years, supporting the company’s broader goal of capturing 10% share in the global EV propulsion market by the end of the decade.