Benzinga | Apr 12, 2021 08:30AM EDT

Magna To Manufacture Modular EV With Israeli Startup REE: Bloomberg

* Canadian auto supplier and contract manufacturer Magna International Inc (NYSE: MGA) jumps the electric vehicle (EV) bandwagon by devising a modular EV with Israeli EV and battery-related start-up REE Automotive, Bloomberg reports.

* The production location, timeline, and financial terms were not disclosed. The companies have proposed to split any future revenue.

* REE inked close to 260,000 vehicle order agreements.

* Magna is credited for contractual car manufacturing with Bayerische Motoren Werke AG (OTC: BMWYY) and Tata Motors Ltd (NYSE: TTM)-owned Jaguar Land Rover. Magna is expected to become Apple Inc's (NASDAQ: AAPL) autonomous driving partner. Last year, Magna partnered with Korea's LG Electronics Inc (OTC: LGEIY) (OTC: LGEJY) to manufacture EV powertrains.

* Magna partnered with Fisker Inc (NYSE: FSR) in Oct. to manufacture an electric Ocean SUV in a Magna plant in Graz, Austria. The project is estimated to commence in late 2022. Magna was also building Beijing Automotive Group Co's ArcFox Alpha-T.

* The Magna stock has jumped 70% since its Fisker partnership announcement on Oct. 15.

* REE has agreed to merge with a special purpose acquisition company (SPAC) 10X Capital Venture Acquisition Corp (NASDAQ: VCVC) in Feb. under a deal valued at $3.1 billion. Magna was one of the investors in the private investment in public equity (PIPE) deal.

* In August, REE forged a partnership with India's Mahindra & Mahindra to develop electric commercial vehicles.

* Price action: MGA shares are trading higher by 0.25% at $89.72 in the premarket session on the last check Monday.