DETROIT — Canoo, a U.S. electric vehicle startup already working with South Korea’s Hyundai, will go public later this 12 months at a price of $2.four billion and goals to begin delivering autos by the second quarter of 2022.

It has joined forces with a so-called particular function acquisition firm, or SPAC, and the mixed firm can be referred to as Canoo Inc following the closing of the take care of Hennessy Capital Acquisition Corp IV within the fourth quarter. It can commerce on the Nasdaq underneath the ticker image “CNOO,” the businesses mentioned.

Tuesday’s announcement comes as buyers need to experience the worldwide shift to EVs and echo the surging inventory value of phase chief Tesla.

A SPAC, also referred to as a “clean examine firm,” is a shell firm that raises cash by an IPO to purchase an working entity, sometimes inside two years. It is a approach many corporations have used this 12 months to go public, together with truck maker Nikola.

“A SPAC has for us an enormous benefit as a result of we will generate sufficient funding to speed up our improvement course of,” Ulrich Kranz, Canoo’s co-founder and chief govt, instructed Reuters.

The previous BMW govt cited Hennessy’s lengthy observe report, which incorporates taking faculty bus maker Blue Hen public in 2015.

Hennessey CEO Daniel Hennessy mentioned he checked out greater than 12 EV startups and most well-liked Canoo’s quicker path to commercialization.

The deal, together with further cash from BlackRock and different institutional buyers, will elevate $607 million in proceeds. Hennessy raised $300 million in its March 2019 preliminary public providing.

Canoo has developed a “skateboard” — a low-rise platform that bundles batteries and electrical motors with such chassis elements as steering, brakes and wheels — on which a wide range of car physique sorts might be constructed.

Canoo initiatives 2024 income of $1.43 billion and its first revenue at $188 million, officers mentioned throughout a convention name.

In February, Canoo, based mostly simply outdoors Los Angeles, introduced a deal to develop EVs with Hyundai. Hyundai additionally has invested in UK electrical van startup Arrival, one other potential SPAC goal.

The primary of Canoo’s lineup — the pod-like, seven-seat canoo — can be out there by way of subscription to U.S. shoppers beginning within the second quarter of 2022, adopted by a small business supply car in 2023 and a sport sedan in 2025, Kranz mentioned. The canoo can have an electrical driving vary of greater than 250 miles.

Canoo expects to construct 10,000 canoo autos in 2022, rising to 50,000 in 2024, the identical annual price it expects to achieve for the supply car and sport sedan in 2026, officers mentioned.

Canoo plans finally to develop to China, Kranz mentioned.

He added that Canoo is not going to have a dealer community and can supply month-to-month car subscriptions bundled with upkeep, charging and entry to insurance.

Canoo has a letter of intent and is in talks to finalize a deal for Canada’s Magna to assemble its autos, Kranz mentioned. Magna, which additionally could construct autos for an additional EV startup, Fisker, confirmed the talks.