Scout Motors, a VW Group spin-off targeting the U.S. market with a rugged all-electric vehicle, is deepening investment with plans to build a $2 billion plant in South Carolina that can produce 200,000 EVs a year. .
There are more and more reasons why Scout Motors keeps the brand as red, white and blue as possible. And it’s not just marketing to US consumers. Some incentives from the Inflation Reduction Act and the South Carolina government Thanks to his package, real incentives are in place. The state government has not disclosed details about what incentives will be offered to scouts. But South Carolina Gov. Henry McMaster will, through an executive order signed in October 2022, authorize the building of EV infrastructure, the preparation of the state workforce for advanced manufacturing jobs, and the centralization of We made the state an EV hub through an executive order prioritizing the organization of EV plans under the state. walking group.
Scout Motors will build a plant in Blythewood, about 20 miles north of Columbia. The plant will eventually employ 4,000 people on his 1,600-acre site in the middle of a developing “battery belt.” The factory itself occupies his 1,100 acres of land.
Construction is expected to begin in mid-2023, the company said.
Teaser images of Scout Motors’ two vehicles, an all-electric truck and an SUV. image credit: Scout Motors
Scout brings back the classic nameplate with funding and technology from the VW Group. However, this factory represents independence from the parent company. From here, the EV brand will have to go up against the Jeep Wrangler, Ford Bronco and Rivian R1S with his four tires of its own.
Scout Motors won’t go the contract manufacturing route, despite rumors of partnering with companies like Magna Styer and Foxconn. The company said it has decided to bring manufacturing in-house.
Keogh said in a recent TechCrunch interview that as a startup they did their job. existing factory.
“At the end of the day, what we’ve come to is that manufacturing is our core expertise,” he said. “We know how to do it well.”
Keough said manufacturing in the U.S. has always been a priority, but the Inflation Reduction Act of 2022 has (literally) provided additional incentives to commit to the idea of building a factory.
“We think it’s important to manufacture in America. Definitely, the Inflation Reduction Act, coupled with what the states are doing, is a smarter time to buy than rent,” Keogh said. says.
Scouts receive support from the South Carolina government. No incentive package was disclosed on Friday. Keough said the decision to sit in the state came down to a number of factors, including the existing infrastructure for the automotive industry and what Keough called “a very strong port.”
About two hours from Columbia, the port of Charleston is the eighth largest and fastest growing port in the United States, a strong incentive for American brands with global roots and ambitions. .
Keogh also praised the “beautiful bandwidth” of local talent at all levels, thanks to local colleges. “This allows us to build a future-oriented company with engineering talent,” he said.
Notably, Scout has a valuable neighbor and up-and-coming player in the EV space, Redwood Materials. The Nevada-based battery materials and recycling startup recently announced his own $3.5 billion plan to build a battery recycling facility in Berkeley County, South Carolina.
“I think what they’re doing is great and just right,” Keough said when asked about the happy coincidence.
Although he declined to confirm a potential partnership between the two brands, battery recycling is very much on the mind, and over time more than 50% of Scout’s battery supply will come from recycled materials. “Yes, we do. Is there a contract in place right now? Absolutely not. But absolutely that’s the plan,” he said.
For now, Scout Motors is focused on producing American-made, American-focused products by the end of 2026. All-electric SUVs will come first, followed by trucks in a few months. These vehicles will share VW components such as motors and inverters, but not the entire platform, so they will have to carve their own way to market.
