July 12 Reuters Walmart Inc has struck a deal with Canoo Inc to buy 4,500 electric vehicles as part of the U.S. retailer39;s goal to achieve netzero emissions by 2040.

Shares of Canoo jumped about 37 in trading before the bell, after Walmart said on Tuesday that it also had an option to purchase up to 10,000 units as it electrifies its delivery fleet.

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 gaspowered vehicles, including Cummins Inc and Daimler Truck39;s Freightliner.

The retailer in January said it had reserved 5,000 electric delivery vans with General Motors39; 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 , Amazon.com Inc and United Parcel Service Inc have pledged to shift their large delivery fleets to EVs.

The deal announced on Tuesday also includes Canoo39;s fully electric Lifestyle Delivery Vehicle LDV. The EV startup anticipates starting production of the LDVs beginning in the fourth quarter of 2022, according to the statement.

Canoo Chief Executive Officer Tony Aquila said the firm expects to build 14,000 to 17,000 vehicles in 2023.

By continuing to expand our last mile delivery fleet in a sustainable way, we39;re able to provide customers and…