Canoo's Oklahoma Facility Secures First State Automotive Foreign-Trade Zone Status, Streamlining Operations And Reducing Compliance Costs

Strategic Milestone for Electric Vehicle Manufacturing

Canoo Inc. (NASDAQ: GOEV), a producer of fully electric advanced mobility solutions, has received approval from U.S. Customs and Border Protection to designate its Oklahoma City operations as the state’s inaugural automotive Foreign-Trade Zone. This designation represents a significant operational advantage in an increasingly competitive EV manufacturing landscape.

Understanding Foreign-Trade Zone Benefits

Foreign-Trade Zones function as specially designated areas that enable companies to defer, reduce, or eliminate duties and taxes on imported materials and components. For automotive manufacturers like Canoo, the advantages are substantial: duty elimination on imported raw materials, deferred tariffs on domestically produced goods, expedited customs processing, and indefinite merchandise holding capacity. These mechanisms help streamline supply chain management while protecting against potential tariff volatility anticipated in 2025.

The zone also permits just-in-time inventory practices and allows companies to sell finished products containing imported components to other U.S. FTZ operations—a feature particularly valuable for integrated manufacturing ecosystems.

Canoo’s Oklahoma Operations Expansion

The company’s Oklahoma facility, launched in April of the previous year, spans approximately 500,000 square feet with expansion potential and capacity to employ over 500 workers at full operation. Canoo has recently relocated its California engineering division to Oklahoma, consolidating design and production functions under a single operational roof.

This consolidation strategy directly supports the company’s manufacturing ramp-up objectives. The facility now operates with recently acquired advanced manufacturing equipment formerly belonging to Arrival Automotive UK Limited, enabling increased cabin line production volumes heading into 2025.

Product Innovation And Market Positioning

Canoo’s portfolio comprises a modular line of fully electric light-duty vehicles (LDVs) engineered for commercial delivery, pickup, and lifestyle applications. The modular platform architecture maximizes usable interior space while maintaining eco-friendly construction practices and a distinctive minimalist design language.

The company positions itself as a commercial-sector equivalent to Tesla’s (NASDAQ: TSLA) consumer EV dominance, leveraging software integration and customized configurations to reduce total cost of ownership for fleet operators. Recent Red Dot Design Awards recognition underscores the competitive differentiation embedded in Canoo’s vehicle architecture and aesthetic approach.

Supply Chain Security And Competitive Advantage

Tony Aquila, Canoo’s Executive Chairman and CEO, emphasized that the FTZ designation represents part of a broader operational strategy aimed at supply chain resilience and insulation from international trade policy fluctuations. The Oklahoma concentration of engineering, manufacturing, and logistics infrastructure creates operational synergies while reducing exposure to tariff-related disruptions—a particularly salient consideration given the evolving regulatory environment.

The FTZ approval signals Canoo’s commitment to scaling domestic EV production while maintaining competitive cost structures in a market increasingly influenced by geopolitical and trade policy considerations.