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Canoo Finalizes Incentive Deals Worth $113M

2 min read

Electric vehicle-maker Canoo Inc. said Monday that it finalized agreements on workforce and economic development incentives from Oklahoma and the Cherokee Nation for its vehicle assembly and battery module plants in Oklahoma City and Pryor.

The publicly traded startup put the deals’ combined estimated value at $113 million over 10 years. The deals require the company to meet employment and capital investment requirements over the next few years.

Canoo said it will invest more than $320 million in its Oklahoma City assembly facility and Pryor battery module manufacturing plant, creating a combined 1,360 jobs at higher-than-average wages.

“It’s been a multi-year effort to get to this point, and we are delighted to have finalized these agreements which enable Canoo to hire more than 1,300 Oklahomans and fulfill the vision of its state and tribal leaders to bring new industry to the state,” Canoo Chairman and CEO Tony Aquila said in a news release. “We’re grateful for the warm reception we’ve received, and we look forward to further building upon our relationships with state and local government and tribal leaders to realize their vision for Oklahoma.”

Aquila said work at both locations is underway, with vehicle assembly equipment on site and ready for installation at the Oklahoma City facility. In Pryor, he said, similar work is underway to complete installation and begin “months of work to calibrate, test, and validate the performance and integrity of the high-tech systems.”

Both plants “will incrementally expand production capacity in line with the company’s revenue forecasts,” Aquila said.

Canoo, which agreed this month to pay a $1.5 million fine to the Securities & Exchange Commission, is scheduled to report second-quarter financial results after the market closes Monday.

The company has operations in northwest Arkansas and said it will move its headquarters there.

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