Core Viewpoint - Critical Metals Corp has announced exceptional assay results from the Tanbreez Project in Greenland, indicating a significant opportunity to increase the current Maiden Resource Estimate (MRE) of rare earth materials from 225 million tonnes (MT) to an exploration target of 500MT [1][19][30]. Group 1: Assay Results and Resource Estimates - The weighted average grade from the newly released diamond drill hole results is 0.43% Total Rare Earth Oxides (TREO) with 28% Heavy Rare Earth Oxides (HREO) and 1.44% Zirconium Oxide (ZrO2) [9][13]. - The MRE for the Tanbreez Project is approximately 45MT of eudialyte containing 0.38% TREO, including 27% HREO, along with 180MT of industrial mineral by-products [1][30]. - The deep diamond drill holes have confirmed mineralization grades ranging from 0.33% to 0.51% TREO, with the potential for further resource upgrades [13][19][23]. Group 2: Drilling Plans and Operations - The company has applied for a Program of Works for the 2025 resource drilling program to upgrade the Inferred Resource to Indicated Resource category and extend the size of the Tanbreez Fjord and Hill Zone Deposits [2]. - The first stage of the drilling program will target the Fjord Deposit, while the second stage will focus on the Hill Zone Deposit, with planned depths of 60m to 150m [4][6][5]. - The company is currently re-assaying historical samples to confirm and reconcile assay results, with updates expected soon [3][7]. Group 3: Strategic Positioning and Future Outlook - The Tanbreez Project is strategically positioned to advance development plans, with ongoing exploration and fieldwork to deepen understanding of the asset's potential [1][19]. - The company holds a 42% interest in the Tanbreez Project, with the right to increase this to 92.5%, indicating strong control over the resource [1]. - The project is expected to play a crucial role in supplying critical minerals essential for electrification and next-generation technologies in Europe and its partners [38][39].

Core Insights - REE Automotive Ltd. has announced cost reduction measures to streamline its operations and extend its financial runway, focusing on software-defined vehicle (SDV) technology [1][2][3] Financial Adjustments - The company aims to reduce monthly operating expenses from approximately $6 million to about $2.7 million by year-end, representing a 55% decrease [2][6] - A one-time charge of approximately $2.1 million is expected due to the reduction-in-force plan, which involves a workforce reduction of about 50% across the U.S., Israel, and the U.K. [2][6] Strategic Focus - REE Automotive is concentrating its resources on SDV technology and enhancing operational efficiency while maintaining core R&D and engineering capabilities [3][6] - The company is adopting a licensing and partnership model for its SDV technology to drive long-term growth and stability [3][6] Organizational Changes - The new organizational structure is designed to create a leaner operation, allowing for a stronger focus on licensing its SDV technology [6][7] - The company is taking immediate steps to stabilize operations in response to volatile global macro-economic conditions [3][6] Technology Overview - REE Automotive develops software-defined vehicle technology that enhances vehicle operations and features through proprietary software, aiming for safer and better-performing vehicles [4] - The company's SDV technology utilizes zonal architecture for improved redundancy and stability, with capabilities for over-the-air updates [4]

Core Viewpoint - REE Automotive Ltd. has received an upgrade to Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for REE Automotive indicates expected earnings of -$1.38 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 68.7% [9]. - Over the past three months, the Zacks Consensus Estimate for REE Automotive has increased by 63.3%, showing a trend of rising earnings estimates [9]. Zacks Rating System - The Zacks rating system is based on changes in earnings estimates, which are crucial for determining stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - REE Automotive's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Financial Data and Key Metrics Changes - The company's liquidity improved to $72 million at the end of 2024, including an $18 million credit facility, reflecting successful securities offerings that raised approximately $60 million in gross proceeds [13] - The GAAP net loss for the full year was $111.8 million, a slight improvement from $114.2 million in 2023, primarily due to lower engineering and R&D expenses [15] - On a non-GAAP basis, the net loss improved to $70.3 million from $98.3 million in 2023, driven by reductions in engineering and R&D expenses [16] Business Line Data and Key Metrics Changes - The company achieved the first federal motor vehicle safety standard certification for a full by-wire vehicle in the US, marking a significant milestone in its technology development [6] - The launch of ReAI Cloud in collaboration with Geotab introduced vehicle services and advanced data analytics, creating a new software revenue opportunity [7] - The company is focusing on generating revenue from its software business, which is viewed as mature and gaining traction in the market [10] Market Data and Key Metrics Changes - The company reported close to $1 billion in reservations, which includes binding orders and capacity reservations, indicating strong demand for its technology [33] - The current US tariffs and trade policy has significantly impacted the supply chain, affecting production plans and timelines [8][9] Company Strategy and Development Direction - The company is transitioning towards a subscription-based revenue model and plans to license its technology, which is seen as a less capital-intensive approach [11][21] - A strategic decision was made to focus on software technology due to the uncertainty in the production environment, allowing for better capital preservation [21][22] - The company aims to support OEMs and suppliers with a flexible platform that enhances performance and manufacturing efficiency [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technological advancements and the strong demand for its software-defined vehicle technology [34] - The company is actively engaging with suppliers and customers to find solutions to current challenges and is restructuring its technology teams to focus on software programs [10][12] - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months, prompting plans to pause production and reduce costs [18] Other Important Information - The company plans to reduce monthly operating expenses from $5 million to $6 million to between $3 million and $4 million by the end of the year [30] - The expected cash and cash equivalents balance for Q1 2025 is approximately $79.6 million, including the credit facility [19] Q&A Session Summary Question: Can you talk about the conversion of the MOU to a definitive agreement? - Management indicated that there is currently no change in the timeline for the MOU and payments have already started being received for services delivered [27][28] Question: What is the actual cash balance at the end of the quarter excluding the credit facility? - The cash balance at the end of the quarter was $61 million, excluding the credit facility [29] Question: Can you discuss the reservations and any potential cancellations? - Management noted that customer interest in the product has increased, and there have been no significant cancellations despite the production pause [33][34]

Financial Data and Key Metrics Changes - The company improved its liquidity to $72 million at the end of 2024, including an $18 million credit facility, following two successful securities offerings that raised approximately $60 million in gross proceeds [12] - The GAAP net loss for the full year was $111.8 million, a slight improvement from $114.2 million in 2023, primarily due to lower engineering and R&D expenses [13] - On a non-GAAP basis, the net loss improved to $70.3 million from $98.3 million in 2023, driven by reductions in engineering and R&D expenses [14] Business Line Data and Key Metrics Changes - The company achieved significant milestones in technology, including the first federal motor vehicle safety standard certification for a full by-wire vehicle in the US and the completion of the first autonomous drive on an active runway with Airbus [5][8] - The launch of ReAI Cloud in collaboration with Geotab opened new software revenue opportunities, indicating a shift towards a software-driven business model [5] Market Data and Key Metrics Changes - The company reported close to $1 billion in reservations, which includes binding orders and capacity reservations, indicating strong demand for its technology despite the temporary pause in production [34] - The current US tariffs and trade policies have significantly impacted the supply chain, affecting the company's ability to execute its original production plans [7][8] Company Strategy and Development Direction - The company is focusing on a software-first approach, transitioning towards a subscription-based revenue model and licensing its technology to OEMs and technology companies [10][20] - A strategic decision was made to temporarily pause production to address uncertainties in the macroeconomic environment and tariffs, while prioritizing software development [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technology and its ability to adapt to market conditions, emphasizing the importance of preserving cash for future flexibility [21] - The company remains optimistic about the demand for its software-defined vehicle technology, which is seen as a cornerstone for future mobility [9][22] Other Important Information - The company plans to significantly reduce monthly operational expenses, targeting a reduction from $5-6 million to $3-4 million by the end of the year [30] - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months, prompting plans for cost reductions and restructuring [17] Q&A Session Summary Question: Can you talk about the conversion of the MOU to a definitive agreement? - Management indicated that there is currently no change in the timeline for the MOU and that payments have already started being received for services delivered [27][28] Question: What is the actual cash balance at the end of the quarter excluding the credit facility? - The cash balance was reported at $61 million excluding the credit facility [29] Question: Can you discuss the cash burn and headcount at the end of the quarter? - The anticipated operating expenses are expected to be between $5-6 million a month, with plans to reduce this to $3-4 million by year-end [30][31] Question: Have there been any cancellations in reservations due to the production pause? - Management noted that customer interest in the product has increased, and they believe there is strong demand for their technology despite the production pause [34]

[Earnings Release Overview](index=1&type=section&id=Earnings%20Release%20Overview) The CEO highlighted 2024 as a breakthrough year for SDV technology, announcing a temporary production pause and a strategic shift towards licensing due to macroeconomic challenges and new equity capital raised [CEO Commentary and Strategic Update](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Update) CEO Daniel Barel highlighted 2024 as a breakthrough year for SDV technology, announcing a temporary production pause and a strategic shift towards licensing due to macroeconomic challenges - 2024 was a breakthrough year, successfully advancing the company's **software-defined vehicle (SDV) technology** from concept to commercial reality, with growing interest from OEMs and technology companies[2](index=2&type=chunk) - Due to the disruptive impact of U.S. tariffs and trade policy, the company temporarily paused production to mitigate risks[3](index=3&type=chunk) - The company is actively pursuing less capital-intensive strategies, including licensing and partnerships, to preserve cash, with the production pause considered temporary[4](index=4&type=chunk) - To strengthen its financial position, the company raised new equity capital in **March 2025**[3](index=3&type=chunk) [Financial and Operational Highlights](index=2&type=section&id=Q4%20and%202024%20Year-End%20Financial%20Results%20and%20Recent%20Highlights) REE reported a GAAP net loss of **$111.8 million** for FY2024, with a significant non-GAAP improvement, but management expressed substantial doubt about its going concern ability [Q4 and Full-Year 2024 Financial Results](index=2&type=section&id=Q4%20and%202024%20Year-End%20Financial%20Results) For FY2024, REE reported a GAAP net loss of **$111.8 million** and a non-GAAP net loss of **$70.3 million**, with management expressing substantial doubt about its going concern ability - Management determined substantial doubt about the company's ability to continue as a going concern for the next twelve months due to macroeconomic and tariff impacts[6](index=6&type=chunk) Key Financial Metrics (Full Year 2024 vs. 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | GAAP Net Loss | $111.8 million | $114.2 million | | Non-GAAP Net Loss | $70.3 million | $98.3 million | | Cash & Cash Equivalents (Year-End) | $72.3 million | $85.6 million | | Free Cash Flow (FCF) Burn | Decreased 18% YoY | - | Key Financial Metrics (Q4 2024) | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | GAAP Net Loss | $37.3 million | $38.5 million | $35.2 million | | Non-GAAP Net Loss | $19.8 million | $16.8 million | $32.2 million | - The company successfully raised approximately **$60 million** (gross) in **2024** and an additional **$36.5 million** (gross) in **Q1 2025**[8](index=8&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The financial statements show a reduced operating loss for 2024, a decrease in total assets, a significant increase in liabilities, and improved cash flow from operations, alongside successful capital raises [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=REE%20AUTOMOTIVE%20LTD.%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For FY2024, revenues decreased to **$183 thousand**, while operating loss improved to **$79.1 million**, resulting in a GAAP net loss of **$111.8 million** Annual Statement of Comprehensive Loss (in thousands USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $183 | $1,608 | | Gross Loss | $(3,498) | $(1,662) | | Total Operating Expenses | $75,631 | $118,230 | | Operating Loss | $(79,129) | $(119,892) | | Net Loss | $(111,754) | $(114,208) | | Basic and Diluted Net Loss per Share | $(7.01) | $(11.32) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=REE%20AUTOMOTIVE%20LTD.%20Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets were **$130.3 million**, total liabilities increased to **$107.2 million**, and shareholders' equity decreased to **$23.1 million** Balance Sheet Summary (in thousands USD) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $72,262 | $41,232 | | Total Current Assets | $82,506 | $93,504 | | Total Assets | $130,280 | $137,900 | | **Liabilities & Equity** | | | | Total Current Liabilities | $36,183 | $35,179 | | Total Liabilities | $107,152 | $59,825 | | Total Shareholders' Equity | $23,128 | $78,075 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=REE%20AUTOMOTIVE%20LTD.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$69.0 million** in 2024, with financing activities providing **$63.5 million**, leading to an increase in year-end cash to **$74.8 million** Annual Cash Flow Summary (in thousands USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(68,985) | $(89,273) | | Net cash provided by investing activities | $35,969 | $49,617 | | Net cash provided by financing activities | $63,548 | $23,971 | | **Increase (decrease) in cash** | **$30,532** | **$(15,685)** | | Cash at end of period | $74,772 | $44,240 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company uses non-GAAP measures like Free Cash Flow and non-GAAP net loss to supplement GAAP reporting, providing detailed reconciliations for transparency and performance analysis [Explanation of Non-GAAP Financial Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures, including Free Cash Flow and non-GAAP net loss, to supplement GAAP reporting and enhance understanding of operational performance - The company uses non-GAAP financial measures internally to analyze results and as a useful supplement to GAAP for investors[11](index=11&type=chunk) - Key non-GAAP measures include **Free Cash Flow (FCF)** for liquidity and **non-GAAP net loss** for operational performance[13](index=13&type=chunk)[14](index=14&type=chunk) [Reconciliation Tables](index=9&type=section&id=Reconciliation%20Tables) Detailed reconciliations show a **GAAP net loss of $111.8 million** adjusted to a **non-GAAP net loss of $70.3 million**, and net cash used in operating activities reconciled to a **Free Cash Flow burn of $76.5 million** Reconciliation of Net Loss to Adjusted EBITDA (in thousands USD) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net Loss on a GAAP Basis | $(111,754) | $(114,208) | | Adjustments | $48,977 | $15,664 | | **Adjusted EBITDA** | **$(62,777)** | **$(98,544)** | Reconciliation to Free Cash Flow (in thousands USD) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(68,985) | $(89,273) | | Purchase of property and equipment | $(7,531) | $(3,745) | | **Free Cash Flow** | **$(76,516)** | **$(93,018)** | Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (in thousands USD) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | GAAP net loss | $(111,754) | $(114,208) | | Adjustments | $41,478 | $15,882 | | **Non-GAAP net loss** | **$(70,276)** | **$(98,326)** | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of REE's software-defined vehicle technology and business model, alongside crucial warnings about forward-looking statements and significant operational risks [About REE Automotive](index=4&type=section&id=About%20REE%20Automotive) REE Automotive specializes in software-defined vehicle (SDV) technology, offering a proprietary full by-wire system that is FMVSS certified and licensed to OEMs - REE develops **software-defined vehicle (SDV) technology** with zonal architecture for enhanced safety and over-the-air updates[16](index=16&type=chunk) - The company is the first to achieve **FMVSS certification** in the U.S. for a full by-wire vehicle controlling drive, steer, and brake functions electronically[16](index=16&type=chunk) - REE's business model focuses on licensing its **SDV technology** to OEMs and technology companies, enabling custom vehicle design[16](index=16&type=chunk) [Caution About Forward-Looking Statements](index=4&type=section&id=Caution%20About%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks, including substantial doubt about going concern, reliance on suppliers, and geopolitical instability - The communication includes forward-looking statements regarding REE's strategy, including temporary production pause, licensing shift, and cash preservation efforts[17](index=17&type=chunk) - A primary risk factor is substantial doubt about REE's ability to have sufficient funds for its obligations for the foreseeable future and next 12 months[20](index=20&type=chunk) - Other significant risks include reliance on outsourced manufacturing, dependence on limited suppliers, intense competition, and geopolitical risks related to Israeli incorporation and the Gaza war[20](index=20&type=chunk)

Core Insights - REE Automotive Ltd. reported a significant year in 2024, transitioning its software-defined vehicle (SDV) technology from concept to commercial reality, with increasing interest from OEMs and technology companies [2][3] - The company is facing challenges due to macroeconomic changes, including U.S. tariffs and trade policy, prompting a temporary pause in production plans while monitoring supply chain conditions [3][4] - REE is shifting towards less capital-intensive approaches, such as licensing and partnerships, to deploy its technology and maintain growth despite industry headwinds [4] Financial Performance - As of December 31, 2024, REE had $72.3 million in cash and cash equivalents, down from $85.6 million in 2023 [5] - The net loss for 2024 was $111.8 million, a slight improvement from $114.2 million in 2023, primarily due to reduced engineering and R&D expenses [5][6] - The fourth quarter of 2024 saw a GAAP net loss of $37.3 million, compared to $38.5 million in Q3 2024 and $35.2 million in Q4 2023 [5][13] Operational Adjustments - The company has decided to implement a temporary pause in production to preserve cash and adapt to evolving market conditions, while also significantly reducing operating expenses [3][7] - REE raised approximately $60 million in 2024, including $15 million in March and $45 million in September, to strengthen its financial position amid challenging market conditions [13] - The company is focusing on optimizing its corporate structure and adjusting headcount to enhance flexibility in response to industry uncertainties [7] Market Position and Strategy - REE's technology aims to meet unmet customer needs, and the company is pursuing low-capital intensity routes to market, including licensing and partnerships [4] - The company emphasizes that production remains part of its long-term strategy, but the current pause is viewed as a temporary measure to ensure long-term viability [4] - REE's proprietary technology is designed to be adaptable and future-proof, enabling OEMs to build vehicles tailored to their specific requirements [16]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Core Viewpoint - REE Automotive Ltd. is poised for significant growth in 2025 with the expected delivery of its first software-defined vehicle (SDV), the P7-C, and has seen strong market validation with reservations nearing $1 billion [3][4]. Business Highlights - 2024 was a pivotal year for REE, marking the commencement of production for the P7-C, the first FMVSS-certified full by-wire commercial vehicle in the U.S., with deliveries anticipated in the first half of 2025 [3][4]. - The company has increased reservations to nearly $1 billion, indicating strong demand for its SDV technology [8]. - Collaborations with Motherson Group and Roush Industries are expected to enhance REE's supply chain and delivery capabilities for SDVs [8]. - A memorandum of understanding (MOU) has been signed with a leading technology company to expand REE's access to the global autonomous transportation market [8]. - REE has achieved significant technology milestones, including FMVSS certification and the completion of its first autonomous drive with Airbus UpNext [8]. Financial Results - As of December 31, 2024, REE expects to report $72.3 million in cash and short-term investments, down from $85.6 million in 2023 [9]. - The anticipated GAAP net loss for 2024 is $111.8 million, or $7.01 loss per share, an improvement from a net loss of $114.2 million, or $11.32 loss per share, in 2023 [9]. - The expected fourth-quarter 2024 GAAP net loss is $37.3 million, or $1.51 loss per share, compared to $38.5 million in Q3 2024 and $35.2 million in Q4 2023 [9]. Upcoming Events - The company will reschedule the release of its fourth-quarter and fiscal year 2024 financial results to May 15, 2025, before market opening [10]. - A conference call will be held on the same day at 8:30 a.m. ET to discuss financial results and recent developments [10].

Core Viewpoint - REE Automotive Ltd. has been awarded Frost & Sullivan's 2025 Company of the Year in the North American Electric Medium-Duty Vehicle Platform Industry for its innovative software-defined modular platform that addresses challenges in the electric vehicle landscape [1][5]. Company Overview - REE Automotive is focused on developing software-defined electric vehicles (SDVs) and has a proprietary technology called REEcorner, which integrates critical vehicle components into compact modules, optimizing space and efficiency [2][3]. - The company aims to scale production capabilities and establish strategic partnerships, including a collaboration with Motherson Group for manufacturing and supply chain management [4][8]. Technology and Innovation - REE's modular platform supports various vehicle types, including last-mile delivery trucks and passenger vehicles, and is designed to be future-ready with a Unified Architecture that merges hardware and software [3][4]. - The technology has gained traction with industry players such as U-Haul, Penske Truck Leasing, and Airbus UpNext, highlighting its market acceptance [3]. Market Position and Strategy - REE is positioned at the forefront of the software-defined, autonomous-ready electric vehicle market, addressing the demand for efficient and sustainable solutions [2][3]. - The company plans to produce its flagship P7-C electric truck in the first half of 2025 and aims to complete rather than compete with global OEMs' future vehicle lineups [8].