Less than two weeks after the Securities and Exchange Commission fined EV startup Canoo $1.5 million for inflating its revenue projections, the company has secured more than $100 million worth of incentives with the state of Oklahoma and the Cherokee Nation.
Canoo has struck an agreement with the Department of Commerce that will see it receive performance-based payouts and make it eligible for certain state tax credits and exemption programs. This comes on the back of the company starting to hire employees for its vehicle assembly facility in Oklahoma City and a battery factory in Pryor.
Reuters estimates Canoo’s financial incentives will be worth $113 million over 10 years. Canoo says it will invest more than $320 million at both of its facilities in the state.
In April, the EV firm announced that it had entered into a long-term lease agreement on a property purchased by an affiliate of AFV Partners founded by its chairman and chief executive Tony Aquila. Canoo intends to establish a 500,000-square-foot factory at the site and expects to employ 500 people there. The site will support a general and final vehicle assembly line as well as advanced robotics, a paint shop, a body shop, and an automated paint line.
Read: Canoo Delivers The Electric CTVs That Will Transport Astronauts To Launch Pad To NASA
“One of the reasons we picked Oklahoma is because it has one of the most amazing workforces in America,” Aquila said earlier this year. “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. I want to thank Mayor (David) Holt and the people of Oklahoma City for welcoming us. I also want to thank Secretary of Commerce (Chad) Mariska and his team for all their help, as well as Terex leadership for allowing us to get started with our teams prior to the close.”
