Canoo to Build EV Factory in Oklahoma

Canoo Announces Oklahoma Manufacturing Facility

Canoo, the electric vehicle (EV) company that recently entered the public market via a SPAC merger, intends to establish a manufacturing plant in Oklahoma. This facility is projected to generate up to 2,000 jobs, as stated by the newly appointed CEO, Tony Aquila, during the company’s investor day presentation on Thursday.

Facility Details and Location

The planned factory will occupy a 400-acre area within the MidAmerica Industrial Park, situated in Pryor, Oklahoma – approximately 45 minutes from Tulsa. Expected to commence operations in 2023, the complex will function as a “mega microfactory,” incorporating a paint shop, body shop, and complete general assembly capabilities.

Aquila highlighted the strategic advantages of the location, noting its proximity to numerous manufacturing and logistics operations. He emphasized the importance of efficient logistics and the ability to facilitate rapid distribution across North America.

Production Strategy

While the Oklahoma facility is under construction, Canoo is collaborating with VDL Nedcar, a Netherlands-based contract manufacturer, to manage initial EV production. The company anticipates delivering its first electric vehicle in the fourth quarter of 2022.

This announcement follows Oklahoma’s unsuccessful attempt to attract Tesla’s next factory, which ultimately chose a location near Austin, Texas. The Tesla facility will be dedicated to producing the Cybertruck, Tesla Semi, and Model Y and Model 3 vehicles for East Coast customers.

State Support and Incentives

Oklahoma Governor Kevin Stitt expressed enthusiasm regarding Canoo’s decision, stating the state offers the lowest electricity costs nationwide. He pointed to Google’s data center in Pryor as an example of a company benefiting from these lower rates.

Canoo’s Product Vision and Growth

Canoo’s investor day showcased contributions from a diverse team of engineers, designers, and executives, all focused on realizing the company’s overarching vision. The company is developing vehicles for both individual consumers and commercial applications.

A key element of Canoo’s strategy is a shared “skateboard” platform, allowing for the integration of different cabin designs – or “top hats” – to create a range of unique vehicles. Several models have already been unveiled, including an electric microbus, a pickup truck, and a vehicle tailored for business-to-business use.

As of the first quarter of 2021, Canoo’s workforce numbered approximately 435 employees, with plans to expand to 690 by year-end, according to CTO Pete Savagian.

Company History and Leadership Changes

The investor day also marked Aquila’s first major public appearance as the company’s leader, following a period of transition.

Founded in 2017 as Evelozcity by former Faraday Future executives Stefan Krause and Ulrich Kranz, the company rebranded as Canoo in 2019 and subsequently debuted its initial vehicle design. The vehicle’s distinctive appearance and the company’s initial subscription-based model garnered significant attention.

Canoo previously established a partnership with Hyundai for collaborative EV development, but this agreement was terminated earlier in the year after a shift in the company’s business model, which involved discontinuing engineering services for other automakers, as stated by Aquila in March.

Regulatory Scrutiny

Both co-founders, Krause and Kranz, have since departed from the company. Furthermore, in May, Canoo disclosed that it is currently under investigation by the U.S. Securities and Exchange Commission (SEC).

The SEC investigation encompasses a broad range of areas, including the initial public offering and merger with Hennessy Capital Acquisition Corp., the company’s operations, business model, revenue generation, customer agreements, financial performance, and the recent departures of key personnel, as detailed in a quarterly earnings report released on May 17.