Israel’s start-up REE said it is planning a merger with SPAC Capital 10X

Photographer: Simon Dawson

REE Automotive, a start-up electric vehicle technology company, has agreed to go public through a merger with 10X Capital Venture Acquisition Corp., a blank check company, according to people with knowledge of the case.

Trade, which includes a $ 300 million private investment in public equity, or PIPE, is expected to bring about $ 3.1 billion in enterprise value to the merged group, the people said. REE investors will own more than 80% of the company together, and a deal could be announced as soon as Wednesday, they said.

A REE representative declined to comment and a 10X spokesperson did not immediately respond to a request for comment

REE, a Tel Aviv-based company led by co-founder and CEO Daniel Barel, will make technology including REEcorner, which connects all drive parts to -into the wheel arch, and REEboard, a modular horizontal machine that can be used as a platform for autonomous delivery vehicles, trucks, shuttles and robo taxis. The company has said its platform can be used for vehicles with a battery or fuel cell.

In August, REE signed a memorandum of understanding with Mahindra & Mahindra Ltd., an Indian-based manufacturer, to develop and roll out up to 250,000 electric vehicles. In November, they began partnering with Iochpe-Maxion SA to manufacture and develop wheel design and chassis technology. REE also has partnerships with Mitsubishi Corp., American Axle & Manufacturing Holdings Inc., KYB Corp., Musashi Seimitsu Business Company and NSK Limited.

REE expects to have 16 collection plants in major centers such as the U.S., Germany and Japan by 2026, with an annual capacity of about 600,000 units, an expert said. They hope to start mass production next year, and have signed MOUs for orders worth $ 5.1 billion through 2026.