Automobile major Mahindra & Mahindra and e-mobility technology company REE Automotive on Wednesday entered into a memorandum of understanding (MoU) to explore development and manufacturing of electric commercial vehicles for global markets.

According to a company statement, such a strategic collaboration will leverage REE's revolutionary electric vehicle corner module and platform technology of integrating powertrain, suspension and steering components in the arch of a vehicle wheel.

"This coupled with Mahindra's well-established vehicle design, engineering, sourcing capability and manufacturing assets, is set to be a win-win strategic partnership for both companies," the statement said.

"The partnership will support REE's global customer need for 200,000-250,000 electric commercial vehicle units over a few years, including potential Mahindra's domestic and international volumes. Production would be scaled further to support additional volume in the global as well as Indian market," it added.

As per the statement, REE's architecture will enhance Mahindra's capabilities in the electric vehicle sector.

"REE will leverage Mahindra's global presence and its unique volume flexibility capability as well as its engineering and product development expertise," the statement said.

"REE's transformational technology is designed for current and future e-mobility applications, including autonomous vehicles, and offers significant benefits in terms of weight, space and total body design flexibility. The scalability of the platform makes it ideal for any form of electric vehicle such as commercial vehicles, mid-duty delivery trucks, last mile delivery, passenger cars, taxis and shuttles," it added..