REE Automotive announced that it has converted its prior memorandum of understanding with a leading technology company into a binding agreement valued at up to $107 million over two years to develop a software-defined autonomous shuttle using its Zonal Architecture SDV platform and REEcorner™ units. In November 2025, the company also signed an MOU with Mitsubishi Fuso Truck and Bus Corporation to integrate its x-by-wire and zonal SDV technologies into a commercial truck platform, with a view toward a broader supply nomination post-2030, and entered into a parallel MOU with BorgWarner’s Cascadia Motion to co-develop and commercialize a next-generation electric drive unit (EDU). Under the cascading partnership with Cascadia Motion, REEcorner™ modules will be combined with Cascadia’s iM-125 motor-inverter in a royalty-bearing arrangement, positioning REE to capture growth in a global EDU market projected to double by 2035 at a ~9% CAGR.

For the six months ended June 30, 2025, REE reduced its GAAP net loss by 33% year-over-year to $24.3 million, driven largely by non-cash gains from warrant and derivative remeasurement, partially offset by inventory write-downs and impairment charges. However, free cash flow burn increased by 31% to $52.5 million, reflecting higher first-quarter tooling and inventory investments in support of the P7 program. Cash and cash equivalents stood at $54.7 million as of June 30, 2025, having declined to $17.2 million by November 30, 2025 (excluding an $18 million credit facility), underscoring the company’s need to manage working capital tightly while executing its technology pivot.

REE has implemented a disciplined cost-reduction program to lower monthly operating expenses from an average of $6.0 million in H1 2025 to an expected $3.1–$3.3 million in Q4 2025, and is targeting a further reduction to approximately $1.8 million per month by the end of Q1 2026. The plan includes a reduction-in-force, streamlined operations and other efficiency measures representing a potential 70% cut versus the H1 run rate. Management expects these savings to extend its cash runway while supporting continued R&D and partner-driven development efforts.