Canoo’s Incentive Package in Oklahoma Is Worth $113 Million

Canoo, an electric car company, has finalised deals with the state of Oklahoma and the Cherokee Nation on labour and economic development incentives for its vehicle assembly and battery module manufacturing operations in Oklahoma City and Pryor, respectively. The total value of the incentive agreements is anticipated to be up to $113 million over ten years, but the corporation must achieve job creation and investment benchmarks. Canoo will be able to collect performance-based payments from the Quality Jobs programme and the Quick Action Closing Fund, as well as worker training support, under the terms of the agreement with the Oklahoma Department of Commerce. Canoo’s eligibility for specific state tax credits and tax exemption programmes has been confirmed by a letter from the Department of Commerce.

Canoo also secured agreements for on-the-job training with the Cherokee Nation. The Cherokee Nation has agreed to assist Canoo to locate talented individuals on their tribe to staff the battery module manufacturing facility in Pryor under these agreements. Canoo is to invest over $320 million in its Oklahoma City assembly plant and Pryor battery module manufacturing facilities. According to Department of Commerce data, the facilities will produce more than 1,360 employees at wages that exceed average state and local wages.

Canoo has begun hiring for both platforms and has offered open roles on both websites. To recruit and educate a competent advanced manufacturing workforce, the company is collaborating with the Cherokee Nation, the State of Oklahoma, local technical institutions, and staffing agencies. According to Tony Aquila, CEO of Canoo, car assembly equipment is in place and ready for commissioning, testing, validation, and optimisation at the company’s Oklahoma City factory. Similar work is being done in Pryor to finish the installation and begin the months-long process of calibrating, testing, and validating the function and integrity of the high-tech devices. Both sites will gradually increase production capacity in accordance with the company’s revenue projections.