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Canoo's Incentive Package Worth $113M in Oklahoma

The automaker plans to invest $320 million and create more than 1,360 jobs.

A rendering of Canoo's battery module manufacturing facility at MidAmerica Industrial Park in Pryor, OK.
A rendering of Canoo's battery module manufacturing facility at MidAmerica Industrial Park in Pryor, OK.
Canoo

Electric vehicle startup, Canoo, has finalized agreements on workforce and economic development incentives with the state of Oklahoma and the Cherokee Nation for its vehicle assembly and battery module manufacturing plants in Oklahoma City and Pryor, respectively. The estimated combined value of the incentive agreements is up to $113 million over 10 years, but the company must meet job creation and investment targets.

The agreement with the Oklahoma Department of Commerce will allow Canoo to receive performance-based payments from the Quality Jobs program and the Quick Action Closing Fund and to receive workforce training support. The Department of Commerce has issued a letter confirming Canoo's eligibility for certain state tax credit and tax exemption programs.

Canoo also signed on-the-job training agreements with the Cherokee Nation. Under these agreements, the Cherokee Nation is committed to working with Canoo to identify skilled workers within their reservation to staff the battery module manufacturing facility in Pryor.

Canoo plans to invest more than $320 million in its Oklahoma City assembly facility and Pryor battery module manufacturing plant. Together, the facilities will create more than 1,360 jobs at wages that exceed average state and local salaries, according to Department of Commerce data.

Canoo has begun hiring for both sites and has posted open positions. The company is working closely with the Cherokee Nation, the State of Oklahoma, local tech schools and staffing agencies to recruit and train a skilled advanced manufacturing workforce.

According to Tony Aquila, Canoo CEO, vehicle assembly equipment is in place and is being readied for installation work involving commissioning, testing, validation and optimization at the company's Oklahoma City facility.

In Pryor, 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.

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