EV startup Canoo Inc on Wednesday stated it was accelerating its manufacturing plans within the U.S. and ending its deal for VDL Nedcar within the Netherlands to function its contract producer in Europe.

Canoo shares had been up 3 p.c in after hours buying and selling.

The Arkansas-based firm stated the shift from utilizing VDL Nedcar abroad to counting on the crops it’s constructing in northwest Arkansas and Pryor, Oklahoma, was made to scale back supply-chain vulnerabilities and abroad transport prices, and enhance pace to marketplace for its autos.

“The initiatives introduced in the present day are one other step in executing our technique of decreasing threat and rising certainty,” Chief Govt Tony Aquila stated in a press release. “We’ve got concluded that constructing in America is healthier aligned with our mission.”

Canoo stated beginning manufacturing in Oklahoma stays on observe for late 2023, but it surely additionally now expects to start constructing electrical autos in Arkansas subsequent 12 months, as an alternative of utilizing the VDL Nedcar plant.

It added that whereas the take care of VDL Nedcar was lifeless, it was nonetheless exploring partnership alternatives in Europe with the Dutch firm’s dad or mum, VDL Groep BV.

Canoo stated VDL Nedcar will return Canoo’s prepayment of $30.4 million, however VDL Groep will purchase $8.4 million value of Canoo inventory.

Canoo stated it now expects to construct 3,000 to six,000 EVs subsequent 12 months in Arkansas, up from its earlier goal of as much as 1,000 abroad. It additionally plans to provide 14,000 to 17,000 EVs in 2023, in contrast with its prior goal of 15,000.

The corporate additionally offered manufacturing targets of 40,000 to 50,000 autos for 2024, and 70,000 to 80,000 for 2025. Canoo has beforehand stated the Oklahoma plant will construct greater than 150,000 a 12 months at full capability.

Canoo stated in November it might add a plant in Arkansas to construct small bundle supply autos, however a spokesman stated the power will have the ability to flex between that automobile and the corporate’s seven-seat, pod-shaped vans it calls “way of life autos.”

In December 2020, Canoo went public via a reverse merger with a special-purpose acquisition firm (SPAC). In April, it modified CEOs, with Aquila, a former software program govt and certainly one of Canoo’s largest shareholders, taking on.

Canoo developed a “skateboard,” or a low-rise platform bundling batteries and electrical motors with such chassis parts as steering, brakes and wheels, on which a wide range of automobile physique varieties might be constructed. The corporate additionally plans to construct a pickup truck.