A truck maker wants its own branded lithium forklift pack. The factory asks whether this is an OEM or an ODM project, and the buyer’s lawyer asks who will own the drawings, the BMS firmware and any tooling.
In an OEM project the buyer supplies the specification and often the design, and the factory builds to it under the buyer’s brand. In an ODM project the factory supplies the design, and the buyer adds its brand and sometimes changes. Ownership of drawings, BMS firmware and tooling is not automatic in either model, so write it into the agreement before the first sample. Redway works in both models, and OEM custom orders have no moq by default (1 piece), although some specific products carry a 10-piece minimum, so confirm for your model.
How the two models differ
- OEM. You define the pack: size, voltage, capacity, connectors, BMS behaviour and label. The factory builds it. You usually own the specification and any drawings you supplied.
- ODM. The factory starts from its own platform and adapts it. The base design stays with the factory; you may own the changes you paid for, or only the right to buy the result.
- Hybrid. Many forklift projects sit in between: a factory platform with a customer-specific enclosure, connector set and BMS settings.
Points to agree in writing
- Drawings. Who owns the mechanical and electrical drawings, and whether you may give them to another supplier later.
- BMS firmware and parameters. Whether you receive the parameter set, and who may change it. Our sample-to-series article shows where changes are approved.
- Tooling. Who pays for moulds or fixtures, and what happens to them if the project stops.
- Brand and labels. Logo, model names and manual. See the private-label article.
- Support. Who answers field faults and how spares are supplied after the support period.
Redway describes its OEM and ODM service and tooling and project management on its site; the exact split for your project is settled at quotation.
A simple way to decide
Write down who needs to own the drawings, firmware and tooling after the first order. If you plan to change suppliers or add a second source, insist on OEM terms with clear ownership. If speed matters more than control, an ODM base design can be a sound starting point. Either way, put the choice in the contract before samples are built.
Risk limits
This article is general guidance, not legal advice. Have your own adviser review ownership and confidentiality terms, and do not start a build on a verbal understanding.
Additional perspectives
Put a short ownership schedule in the contract: one line each for drawings, firmware, parameters, tooling and trademarks, with owner and licence. It is much easier to agree this before samples than after a dispute.
Redway Tech Editorial Team – Legal counsel perspective
Decide early which parts must be unique to you (enclosure, connector, CAN messages) and which can stay on the factory’s platform. Fewer custom parts mean a faster sample and an easier second source.
Redway Tech Editorial Team – Product engineer perspective
Ask for a written statement of what happens to tooling and design files if the project ends or either party changes. A clear exit clause is usually a sign of a mature supplier.
Redway Tech Editorial Team – Procurement perspective
Specifications are taken from Redway product pages as of October 2026. Where a figure isn’t published, this article says so. Confirm current specifications for your model with Redway before ordering. This article is general guidance, not a site-specific engineering assessment.
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