Canoo Chooses Northwest Arkansas, Panasonic for Battery Supply

Canoo Expands U.S. Operations with New Facilities

Canoo, the electric vehicle manufacturer that went public recently, is significantly broadening its presence within the United States. The company intends to establish its corporate headquarters and a cutting-edge manufacturing center in Bentonville, Arkansas – a location well-known as the home of Walmart.

Advanced Manufacturing and Production Goals

According to Canoo CEO and Chairman Tony Aquila, the new facility represents a leap forward in production capabilities. It will enable the creation of vehicles tailored for specialized applications and expedite the progression of testing towards the gamma phase.

Aquila emphasized a shift away from conventional market entry strategies, stating the facility will produce vehicles directly for sale by the company.

Gamma Platform and Partnerships

The completion of engineering, design, and material sourcing for the Canoo gamma platform has been achieved. The company is now finalizing preparations for production.

During an earnings discussion, a video was showcased, illustrating the progress of the gamma vehicle build. This hinted at a collaboration with an undisclosed partner for vehicle production within the U.S.

Canoo anticipates constructing between 120 and 150 of these vehicles, with a portion being distributed to prospective partners, as noted by Aquila.

Strategic Alliances and Technology Hubs

Canoo also revealed Panasonic as its official battery supplier during the third-quarter earnings call. Further expansion plans were announced, including the creation of technology centers in Tulsa, Oklahoma, and Fayetteville, Arkansas.

These hubs will concentrate on research and development in key areas such as electronics, powertrains, battery technology, vehicle engineering, and testing.

Expanded operations are also planned for the company’s initial U.S. factory currently under construction in Oklahoma.

Additionally, a software development center will be established in Tulsa, and a customer support and finance center will be located in Oklahoma City. Canoo will maintain its focus on engineering and vehicle design in California.

Job Creation and Economic Impact

“These facilities, collectively, are projected to generate up to 1,200 jobs, providing enhanced educational and employment opportunities within the region,” stated Aquila.

Accelerated Production Timeline

Canoo announced an acceleration of its lifestyle vehicle production start date, moving it from early 2023 to before the end of the fourth quarter of 2022.

Manufacturing Partnerships and Capacity

Earlier in the year, Canoo announced a manufacturing agreement with VDL Nedcar, a Dutch company, for the production of its lifestyle vehicle.

VDL Nedcar will handle manufacturing for both the U.S. and European markets while Canoo develops its U.S.-based mega microfactory.

Initial estimates projected Nedcar to produce up to 1,000 units in 2022 and 15,000 units in 2023. However, Aquila revised the 2023 target to 25,000 units in August.

Oklahoma Incentives and Facility Expansion

In June, Canoo announced plans to construct its first factory in Oklahoma, with the state initially committing $300 million in non-dilutive financial incentives.

Aquila reported on Monday that the state has increased this commitment by an additional $100 million, bringing the total incentive package to $400 million.

Strategic Focus and Order Targets

“We maintain a policy of ‘Big News or No News,’ and as a result, we are accelerating our advanced manufacturing production in the U.S. to commence before Q4 2022,” Aquila explained.

The company is aiming to secure approximately $100 million in vehicle orders from states and universities where it is establishing its facilities.

The Oklahoma factory will now encompass R&D, software development, customer support, and finance operations.

Financial Performance

Canoo reported a net loss of $80.9 million in the third quarter, a substantial increase compared to the $23.4 million loss reported during the same period last year.