Canoo Finalizes Incentive Package with Oklahoma, Cherokee Nation

Company expects to hire over 1,300 at Oklahoma vehicle assembly and battery plants

JUSTIN, Texas, Aug. 14, 2023 /PRNewswire/ -- Canoo (NASDAQ: GOEV), a leading high-tech advanced mobility company, announced it has finalized today agreements on workforce and economic development incentives from 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.  The agreements require the company to meet job creation and investment targets.

"It's been a multi-year effort to get to this point, and we are delighted to have finalized these agreements which enable Canoo to hire more than 1,300 Oklahomans and fulfill the vision of its state and tribal leaders to bring new industry to the state," says Tony Aquila, Chairman and CEO, Canoo.  "We're grateful for the warm reception we've received, and we look forward to further building upon our relationships with state and local government and tribal leaders to realize their vision for Oklahoma."

The agreement with the Oklahoma Department of Commerce will enable 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.

Aquila says that Canoo is pushing ahead with investments in equipment and jobs.  Canoo will invest more than $320 million in its Oklahoma City assembly facility and Pryor battery module manufacturing plant. Together, these facilities will create more than 1,360 jobs at wages that exceed average state and local salaries, according to Department of Commerce data.

Canoo is already hiring for both sites and is advertising for its open positions.  The company is working closely with the Cherokee Nation and with the State of Oklahoma and local career technology schools and staffing agencies to recruit and train a skilled advanced manufacturing workforce.   

Work at both locations, Aquila says, is progressing.  Vehicle assembly equipment is in place and is being readied for installation work involving commissioning, testing, validation, and optimization at its 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, Aquila adds.

Canoo says it was attracted to Oklahoma because of the state's positive environment for business, reputation for dedicated and hardworking people, and entrepreneurial spirit.  The company says it is pleased to play a role in contributing to the broader strategy shared by state leaders, the Cherokee Nation and MidAmerican Industrial Park to grow the local automotive sector and to attract new clean energy technology investment.  Leading clean energy technology companies Enel and USA Rare Earth recently announced plans to invest in Oklahoma.

Aquila adds that Canoo is accessing long-established incentive programs available to any business that meets eligibility criteria set by tribal and state governments.

About Canoo

Canoo's mission is to bring EVs to Everyone. The company has developed breakthrough electric vehicles that are reinventing the automotive landscape with bold innovations in design, pioneering technologies, and a unique business model that spans the full lifecycle of the vehicle. Distinguished by its experienced team from leading technology and automotive companies – Canoo has designed a modular electric platform purpose-built to deliver maximum vehicle interior space that is customizable across all owners in the vehicle lifecycle to support a wide range of vehicle applications for consumers and businesses.  

Canoo has teams in California, Texas, Michigan, Oklahoma, and Arkansas. For more information, please visit www.canoo.com. For Canoo press materials, including photos, please visit press.canoo.com. For investors, please visit www.investors.canoo.com. 

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, expectations and timing related to commercial product launches and the achievement of operational milestones, including the ability to meet and/or accelerate anticipated production timelines, Canoo's ability to capitalize on commercial opportunities, current or anticipated customer orders, and expectations regarding the development of facilities. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Canoo's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Canoo. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; Canoo's ability to access future capital, via debt or equity markets, or other sources; the rollout of Canoo's business and the timing of expected business milestones and commercial launch; future market adoption of Canoo's offerings; risks related to Canoo's go-to-market strategy and manufacturing strategy; the effects of competition on Canoo's future business, and those factors discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Canoo's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (the "SEC") on March 30, 2023, as well as its past and future Quarterly Reports on Form 10-Q and other filings with the SEC, copies of which may be obtained by visiting Canoo's Investors Relations website at investors.canoo.com or the SEC's website at www.sec.gov. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Canoo does not presently know or that Canoo currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Canoo's expectations, plans or forecasts of future events and views as of the date of this press release. Canoo anticipates that subsequent events and developments will cause Canoo's assessments to change.

However, while Canoo may elect to update these forward-looking statements at some point in the future, Canoo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Canoo's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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SOURCE Canoo