Photo: Canoo
Commercial electric vehicle manufacturer Canoo has been talking about opening a new production facility in Oklahoma City since November of 2022, and it seems their plans are finally coming to fruition. The company has now announced it has entered a long-term lease agreement with AFV Partners to use an already existing facility in the city, where it will begin production of the long-delayed Lifestyle Vehicles later this year.
Said facility, a 630,000-square-foot site of which Canoo will only occupy 500,000 square feet at the beginning, is within easy proximity to road, rail, and waterways, which makes it perfect for complex supply chains and manufacturing.
It already has a training center and test track, and it will be adapted to accommodate a modern vehicle assembly line with innovative robotics, a paint shop, quality control, vehicle testing/validation, as well as an upfitting center, according to the company. What's more, the plant will be powered by clean and renewable energy.
Very conveniently, AFV Partners is run by Tony Aquila, who is also the chairman and CEO of Canoo. The EV startup already has a battery plant at MidAmerica Industrial Park in Pryor, and opening a new production facility in Oklahoma City is part of the company's ongoing effort "to bring high-paying light-blue collar jobs" to the state.
The initial plan is to employ 500 people to work at the newly leased site, with the number expected to increase in "the coming months."
"One of the reasons we picked Oklahoma is because it has one of the most amazing workforces in America. 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, OK," Canoo’s CEO explained.
However, the Pryor facility has recently missed a construction deadline, which means they lost up to $10 million in state incentives. Founded back in 2011, Canoo has had a rocky journey so far, and it is no secret that the Californian startup has been struggling financially. For Q4 2022, Canoo reported a net loss of $80.2 million for Q4 2022, bringing the total loss for the year to $487.7 million.
Despite facing delays in production, Canoo already has some pending sales. Oklahoma is said to be interested in buying up to 1,000 Canoo vehicles as part of an incentive package for the Pryor-based plant. Between $35 million and $50 million will be paid for the EVs over a span of five years.
Walmart is another client for Canoo's electric vehicles, having ordered around 4,500 units for same-day delivery of its products. And last year, Canoo signed an agreement with NASA for three Canoo Crew Transportation Vehicles to take Artemis moon astronauts, support staff, and equipment to the launch pad. These vehicles are set to be delivered sometime this year.
According to the company's CFO, Ken Magnet, they are "exploring a number of diversified funding sources," like the Department of Energy’s loan program. Hopefully, the new factory in Pryor and this recently-announced long-term lease agreement will help Canoo not only stay afloat but also fulfill its business commitments.
It already has a training center and test track, and it will be adapted to accommodate a modern vehicle assembly line with innovative robotics, a paint shop, quality control, vehicle testing/validation, as well as an upfitting center, according to the company. What's more, the plant will be powered by clean and renewable energy.
Very conveniently, AFV Partners is run by Tony Aquila, who is also the chairman and CEO of Canoo. The EV startup already has a battery plant at MidAmerica Industrial Park in Pryor, and opening a new production facility in Oklahoma City is part of the company's ongoing effort "to bring high-paying light-blue collar jobs" to the state.
The initial plan is to employ 500 people to work at the newly leased site, with the number expected to increase in "the coming months."
"One of the reasons we picked Oklahoma is because it has one of the most amazing workforces in America. 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, OK," Canoo’s CEO explained.
However, the Pryor facility has recently missed a construction deadline, which means they lost up to $10 million in state incentives. Founded back in 2011, Canoo has had a rocky journey so far, and it is no secret that the Californian startup has been struggling financially. For Q4 2022, Canoo reported a net loss of $80.2 million for Q4 2022, bringing the total loss for the year to $487.7 million.
Despite facing delays in production, Canoo already has some pending sales. Oklahoma is said to be interested in buying up to 1,000 Canoo vehicles as part of an incentive package for the Pryor-based plant. Between $35 million and $50 million will be paid for the EVs over a span of five years.
Walmart is another client for Canoo's electric vehicles, having ordered around 4,500 units for same-day delivery of its products. And last year, Canoo signed an agreement with NASA for three Canoo Crew Transportation Vehicles to take Artemis moon astronauts, support staff, and equipment to the launch pad. These vehicles are set to be delivered sometime this year.
According to the company's CFO, Ken Magnet, they are "exploring a number of diversified funding sources," like the Department of Energy’s loan program. Hopefully, the new factory in Pryor and this recently-announced long-term lease agreement will help Canoo not only stay afloat but also fulfill its business commitments.
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