Israeli start-up plans to expand its UK operations. The UK already includes a Warwickshire development center.

Israeli electric start up REE is building its factory in the UK as a complement to its Warwickshire development centre.

According to CEO Daniel Barel, the company calls the new facility a “launch integration center” that will be used as a pilot factory for REE’s innovative cornerers. These ‘corners, which combine suspension, wheel, and electric drivetrain in one package, are designed to make it easier to produce electric commercial vehicles.

When fully operational, the plant will be able to produce 200,000 corners. REE has not yet revealed the location of the facility, but it is expected to be in the Midlands. The factory will begin work in spring 2013.

Although the ‘practice factory” will continue to build corners that are ready for commercial use, it will work at a slower pace than its full-speed assembly centres. The first Austin location is planned.

Barel stated that “if you want to produce X number of units per day, it takes time before you create it so it works seamlessly.” “If you only run half your capacity, it’s still a great product. It’s not the work that you do, it’s inefficient.

REE would then “upload” the settings from the UK plant to other facilities. This allows for faster production and lower costs. All the robots are ready, everything is there. We time it and make sure it works perfectly. Then we synchronize it, then we plug it in to all our centres around the world,” Barel stated.

Barel stated that the new UK assembly plant will employ 58 workers.

In August, the government-funded Advanced Propulsion Centre (APC), which is funded by PS12.4million, gave REE PS12.4 million to continue developing its electric corners at the newly established facility. It is located near Nuneaton in Warwickshire.

REE’s MIRA facility allows for the testing of products created at its Tel Aviv, Israel headquarters.

Barel stated that the MIRA facility employs “hundreds” and is larger than the Tel Aviv center. He said, “It’s the place where we engineer all components, all hardware and software to automotive grade standards and mechanics.” There, the company certifies its products.

The APC’s success story with REE is that it uses government money to bring foreign auto companies to the UK. Ian Constance, the head of the organization, said earlier this year that “the work we’ve done together has brought their R&D to here.”

REE has partnered with Magna and Poindexter, a US commercial bodybuilder Poindexter, to market vans for delivery companies. There has not yet been a customer. REE was listed on the New York Stock Exchange earlier this year, after it merged with SPAC (a special acquisition company). The company’s current value is $1.17 billion.