© Reuters. FILE PHOTO: The logo of a Walmart Superstore is seen in Rosemead, California, U.S., June 11, 2020. REUTERS/Mario Anzuoni/
(Reuters) – Walmart (NYSE:) Inc has signed a deal with electric vehicle maker Canoo Inc to purchase delivery vehicles as part of the U.S. retailer’s goal to achieve zero emissions by 2040.
Walmart will buy 4,500 EVs from Canoo with the option to purchase up to 10,000 units to boost its online business, the companies said in a statement on Tuesday.
Financial terms of the deal were not disclosed.
In June, Walmart said it was expanding transportation pilots with the manufacturers of electric, hydrogen and natural gas-powered vehicles, including Cummins Inc (NYSE:) and Daimler (OTC:) Truck’s Freightliner.
The retailer in January said it had reserved 5,000 electric delivery vans with General Motors (NYSE:)’ commercial EV business BrightDrop.
A large number of companies have been pushing into the growing commercial EV space as governments around the world are pressing companies to slash CO2 emissions.
Companies including FedEx Corp (NYSE:), Amazon.com Inc (NASDAQ:) and United Parcel Service Inc (NYSE:) have pledged to shift their large delivery fleets to EVs.
The deal announced on Tuesday also includes Canoo’s fully electric Lifestyle Delivery Vehicle (LDV). The EV maker anticipates starting production of the LDVs beginning in Q4, 2022, according to the statement.
“By continuing to expand our last mile delivery fleet in a sustainable way, we’re able to provide customers and Walmart+ members with even more access to same-day deliveries while keeping costs low,” said David Guggina, senior vice president of innovation and automation at Walmart U.S.