Walmart will buy 4,500 all-electric delivery vehicles from EV manufacturer Canoo to fulfill e-commerce orders in 2023

Walmart has signed up to buy 4,500 electric vans from the struggling EV startup Canoo.

Walmart added the option to buy up to 10,000 units and will be the first company to receive Canoo’s Lifestyle Delivery Vehicle (LDV).

The LDVs will be driven by Walmart employees to deliver online orders such as groceries and could potentially be used for Walmart’s white-label delivery service GoLocal.

Both companies said some “advanced deliveries” will begin in the coming weeks in the Dallas-Fort Worth area to refine and finalize vehicle configuration.

Canoo expects to start LDV production in Q4 of this year.