Automotive component manufacturer Samvardhana Motherson International (SAMIL), through its wholly-owned subsidiary MSSL Consolidated, is acquiring up to 3.64 million Class A shares in Israel-based e-mobility company REE Automotive for $4.122 per share, resulting in a total investment of $15 million.

The company has announced the purchase of 11% stake on a fully diluted basis and up to 19% on a non-diluted basis in REE Automotive.

The transaction is expected to be completed within 30 days.

REE Automotive is engaged in designing, developing, and integrating vehicle components into a modular platform for commercial electric vehicles (EV) with applications in mid and last mile delivery. The company has manufacturing facilities in Coventry, UK, and in Austin, Texas, U.S.

REE reported a turnover of $1.6 million in 2023.

SAMIL will also enter into a supply chain management agreement with REE Automotive. Following the agreement, the SAMIL will manage the entire supply chain, including sourcing, managing, and integrating modules for REE. The company has won orders from original equipment manufacturers for about 600 trucks to be executed by 2025.

In 2021, REE Automotive secured $17 million in funding from the UK government as part of a $57 million investment coordinated through the Advanced Propulsion Center. The funding aligned with the UK government’s ambition to shift towards zero-emission vehicles and decarbonize the UK’s transport network.

Electric vehicle sales in India reached a record 1.53 million units in 2023, a jump of over 50% jump against the million units sold in 2022. EVs accounted for 6.4% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways.

The number of EVs is set to exceed 100 million globally by 2026 and reach 700 million by 2040, according to a report by BloombergNEF. These estimates represent a significant surge from the 27 million EVs registered at the beginning of 2023.