Canoo+moves+closer+to+EV+production+in+OKC

Electric vehicle startup Canoo, which has navigated a bumpy road so far in establishing manufacturing sites in Oklahoma, reached a milestone recently in its plan to open a 500,000-square-foot plant in Oklahoma City. The company entered into a long-term lease agreement on a property purchased by an affiliate of AFV Partners, founded by Canoo Chairman and CEO Tony Aquila, for £34.27 million. Canoo said in a release that it will begin “ramping teams” up in coming months and expects to employ more than 500 people as EV production is anticipated to begin later this year.

Canoo previously announced sales agreements involving its yet-to-be-produced EVs. Walmart, for example, has committed to buying at least 4,500 of the vehicles to be used for same-day delivery of products purchased by customers. Canoo also previously announced that it will provide vehicles for NASA.

The state of Oklahoma has agreed to buy 1,000 Canoo EVs over a span of five years. However, the company has faced hurdles in getting production started at a plant currently eyed for manufacturing EV batteries in Pryor and at the site in Oklahoma City – identified as 9528 W. Interstate 40 Service Rd., formerly held by Terex prior to that company’s move to Mexico last year.

It was reported last week that Canoo missed a key deadline [1] and lost out on a deal to reap up to £10 million in state incentives from Oklahoma after failing to start construction on the plant in Pryor. The company had to pay the U.S. Securities and Exchange Commission £1.5 million to settle claims that previous senior executives misled investors about potentials for earnings.

The company also has faced cash problems and has seen its stock price slip precipitously. Aquila said in a statement that bringing production in Oklahoma City closer to reality represents a significant step forward. Situated on more than 120 acres, Canoo’s Oklahoma City manufacturing facility will support a full general and final vehicle assembly line, state-of-the-art robotics, a body shop, a paint shop and an automated paint line including e-coat and sealing, quality control, complete vehicle testing, validation and more, Aquila said.

With an existing training center and test track, the facility is located within easy proximity to road, rail and waterways, he added. The facility will be powered by OG&E and has flexibility to incorporate renewable energy. Canoo’s recently announced Pryor facility also includes renewable energy sources powered by the Grand River Dam Authority.

“One of the reasons we picked Oklahoma is because it has one of the most amazing workforces in America,” Aquila said. “They have proven themselves across many industries, including aviation and aero defense, which is why we are excited to announce our second manufacturing facility in Oklahoma City, following our Vehicle Module Manufacturing Facility event on April 5, in Pryor. I want to thank Mayor (David) Holt and the people of Oklahoma City for welcoming us. I also want to thank Secretary of Commerce (Chad) Mariska and his team for all their help, as well as Terex leadership for allowing us to get started with our teams prior to the close.”

Canoo’s EV design utilizes a modular platform built to be highly customizable for a wide range of business and consumer applications.

The company has a presence in Oklahoma, California, Texas, Michigan and Arkansas.

References

^ missed a key deadline (journalrecord.com)