In what context was REE Automotive created and what mission keeps the company's wheels turning?
Ten years ago, when many voiced that EVs were just a fad, we decided to go against the current and build a company that will cement the electrification revolution. Seeing how the planet was running out of oil and the carbon emissions were skyrocketing, we felt it was in our larger interest as a civilization to help fight climate change. Given that the auto industry is responsible in part for the environment's decaying health, we felt this was a good place to start our mission. From the very beginning we invested in a holistic concept that could help the industry move further faster. We always thought of ourselves as the intel inside of the auto market as we enable companies to have access to the latest innovations. By employing a "complete not compete" strategy, we managed to achieve strategic partnerships with the most important players in the industry. Tier 1s manufacture the technology that we are envisioning and large OEs like Toyota or Mitsubishi are commercializing our products, but we are also working directly with end users. The automotive industry, and especially the commercial EV sector, has significantly changed in the past five years, transitioning from a one-size-fits-all design to a customer-centric approach. Our goal is to help modulate the frequency for OEs across this challenging shift.
What differentiates REE Automotive's platform from other similar products on the market?
We are the sole providers of wire technology and this gives us the opportunity to offer full design modularity, better unit economics, improved efficiency and much faster time to market. In under 24 months, we can bring a product from concept to commercialization, with one of the industry's lowest total costs of ownership. Furthermore, our platform allows for more weight, more miles and easier access in the vehicle. Thanks to our OTA capabilities and fast component replacements of under one hour, we can enable almost zero downtime periods.
How would you defend the stance that EVs are much better than ICEs in terms of sustainability, given the controversy around batteries and energy sources?
We are only in the early stages of figuring out the right pathway to electrification and it is only fair to look at the entire supply chain and identify the possible weak links. It is vital to understand that this transition can only be made through sequential steps and, thus, we do not yet have answers to all the problems.
However, by switching to EVs, especially in urban areas, we will greatly mitigate pollution and improve the quality of life. Once we get to the bottom of the charging infrastructure, we will be able to take a closer look at ways to recycle used batteries and make energy in a cleaner way.
What are the challenges that you expect to particularly face in the years to come?
As opposed to ICEs, where the commercialization process is pretty straightforward, selling an EV implies making sure the customer is aware of the whole value chain that comes with it. From a company perspective, the whole ecosystem, from battery recycling to charging infrastructure, needs to work smoothly in order to drive revenue from our products. Unfortunately, the electric vehicle market is not yet fully sophisticated and we are heavily relying on incentives, which are a great catalyst but cannot offer limitless support. There has been a time where there was no standard for mileage and some promises made in the industry did not come to fruition. The discrepancy between an advertised 400 miles range and a real 150 miles range have led to skepticism among customers, which is especially detrimental in the commercial vehicles market. Although we passed the range anxiety phase, we still need to prove to our clients that this is not a marketing scheme yet again.
What advice would you give to young entrepreneurs who would like to start a company in the automotive industry?
Although I am still learning myself, I would say that in order to achieve long-term success entrepreneurs need to have an extremely clear vision of what they want to accomplish and become almost fanatically disciplined in the way they execute that vision. Although the technology and the product are important, what builds the company is the human minds behind the process. After all, a strong dedicated team is what made REE Automotive what it is today.
