Electric vehicle manufacturer coming to Richland County with historic $2B investment, bringing 4,000 jobs
Automotive company Scout Motors, a newly created Volkswagen company hearkening to a famed but defunct SUV brand of the 1960s and ‘70s, plans to open its first electric truck and SUV manufacturing plant in Blythewood, bringing what is expected to be a $2 billion investment to Richland County.
The landmark deal, which may be the single biggest economic investment in Richland County history, is being described as an “unimagined” opportunity for South Carolina.
“Scout Motors will provide thousands of South Carolinians with previously unimagined opportunities and prosperity for generations to come,” said Gov. Henry McMaster in a statement Friday. “The Palmetto State, with its rich history, superior people, and sterling automotive manufacturing reputation, is the perfect place to re-start this iconic American brand.”
State and county officials announced the deal Friday morning, saying the plant could produce more than 200,000 vehicles each year. The Scout Motors plant could create some 4,000 full-time jobs in the county.
Scout plans to break ground on the plant by the middle of this year. The company hopes to begin making the new vehicles by the end of 2026.
Scout Motors is a new company recently spawned by Volkswagen, reviving the defunct Scout brand. The Blythewood plant will be the world’s first manufacturer of the Scout electric vehicles.
The original International Harvester Scout was an iconic early SUV of the 1960s and ‘70s, but the vehicles stopped being made in the 1980s. The vehicles have become valuable collectibles for car fanatics. Today, models sell for tens of thousands and sometimes hundreds of thousands of dollars.
President and CEO of Scout Motors Scott Keogh called the Richland County plans a “new era for Scout” in a statement Friday.
“Scout has been an American icon since introducing an SUV in 1960. It’s the vehicle that took your family on a camping trip, that gave access to the great outdoors, and that showed up on the job site every morning,” Keogh said.
“Today, we’re reimagining Scout’s original ingenuity and electrifying its future. We’re bringing the Scout spirit to South Carolina and it’s going to be a hell of a ride,” he added.
The newly reimagined Scout versions to be made in Richland County would arrive at a time when electric vehicles are gaining popularity. Consumer Reports notes a wave of EVs are on the way from a slew of companies. For instance, Ford says it will be producing 2 million EVs per year by 2026.
South Carolina is also betting large on electric vehicles.
In October, BMW announced a $1.7 billion investment to prepare its Upstate facility to manufacture six electric vehicle models by 2030. In December, the Envision Automotive Energy Supply Co. announced an $810 million deal in Florence County for BMW battery cells. That same month, an even larger, $3.5 billion auto battery plant was announced in Berkeley County.
The state has also noted a need to expand the availability of charging stations as it leans into the electric vehicle boom. As of June 2022, the state had 432 charging stations.
McMaster in October signed an executive order mandating state agencies to formulate plans to expand charging stations in the state. He also ordered the Department of Commerce to set up a one-stop shop so electric vehicle manufacturers interested in coming to the state have a primary point of contact.
Renewable energy advocate Eddy Moore, who is with the S.C. Coastal Conservation League, said plans for an electric vehicle plant represents the future. Electric vehicles are not dependent on gasoline and they do not produce pollution that worsens climate change, Moore said.
“We are just watching the energy tech revolution happen before our eyes,’’ he said. “This is not about politics, but better technology’’
News of the prospects of Volkswagen Group building fully-electric vehicles under the Scout banner began to circulate in national media outlets earlier this week. U.S. News and World Report detailed in a Thursday story that Volkswagen Group “planned to create a new company in the U.S. to build fully-electric pickup trucks and SUVs under the legendary Scout brand.”
Scout is recruiting employees for the new facility on its website. The state Department of Commerce is also recruiting potential suppliers for the new company online.
Incentives to land the deal
The project is the latest and by far largest in a string of recent economic development deals announced in Richland County, including a $323 million electric vehicle battery materials plant announced in December and a potential $1 billion solar panel manufacturing project that incentives were approved for in November.
Previously identified as “Project Connect,” the Scout deal is expected to receive tax incentives from the county, which already have been initially approved.
“This decision represents a transformational breakthrough that would position us at the forefront of the clean energy future while promising to boost the quality of life for residents across our county for generations to come,” Richland County Council Chair Overture Walker said in a news release.
The Scout plant will be located in a growing industrial park in Blythewood, a town north of Columbia on Interstate 77. The facility itself is expected to clock in at 1,100 acres, according to a statement from the company.
According to the “Project Connect” tax incentive agreement that has been initially approved by Richland County Council, Scout Motors agrees to invest $400 million within eight years of the deal with the county, and $2 billion within 13 years. County Council still must take a third and final vote to approve the incentive deal.
The county is considering what is known as a fee-in-lieu of tax deal for the project. Such arrangements have long been the norm for economic development deals in South Carolina.
According to county paperwork, the period for the incentives for the company would be for 40 years. The company’s property would be assessed at a tax rate of 4%. Per the state Department of Revenue, manufacturing property in South Carolina is typically assessed at rates up to 10.5%.
The company also will be able get a further 50% tax break through making investments in infrastructure, a setup known as an infrastructure tax credit. The incentives also include stipends for employees’ child care, according to the company.
The concept of infrastructure tax credits to help reduce a project’s tax bill, and thus entice an entity to set up shop locally, is a frequent apparatus in local governments’ toolkits. For instance, last year the county approved infrastructure credits for Florida developers the Framework Group to build an $80 million housing development at BullStreet. The economic incentive for the Framework development amounted to a 50% property tax break for 10 years.
It is not yet clear what state-level incentives may have been offered for the project. State Sen. John Scott, D-Richland, said given the development’s size, it’s likely the state will be asked to help pay for new road, water and sewer infrastructure at the site.
Columbia Chamber CEO Carl Blackstone called the project a “grand slam” for the region.
Before Friday’s announcement, the largest economic development project in county history had been the Mark Anthony Brewing facility, which brought a $490 million plant and 300 jobs to a facility that opened last year on Shop Road. That company makes White Claw alcoholic seltzers and other drinks.
Blackstone noted Volkswagen’s Scout project could have economic effects far beyond just the plant in Blythewood. It could create a cascading effect that brings in other suppliers and businesses.
“The supplier network alone could bring thousands more jobs,” the Columbia Chamber leader said. “This is just the beginning. You look at what the spinoff of Boeing has been and the spinoff of what BMW has been, it’s been instrumental in transforming the Lowcountry and the Upstate. This has the potential to do that here.”
Scout’s plans for having 4,000 employees at the Blythewood plant could be a transformative labor infusion for the region. Blackstone said workforce development will be critical.
Making the deal
The deal to bring Scout to Richland County apparently developed quickly.
Company representatives began looking at Richland County last year after Volkswagen acquired the Scout brand, a source familiar with the negotiations said.
By mid-December, company representatives had visited the site in Richland County and by Friday an announcement was made, the source said.
A consultant working on the economic development project said he “had never done one this fast,’’ the source said.
Scout’s use of the county industrial park is expected to take up much of the space on the nearly 1,400 acres of undeveloped property off Blythewood Road.
Some of the property contains wetlands, so federal and state permits might be needed, depending on the configuration of the plant, The State was told. The amount of wetlands, which are federally protected unless a permit is approved, was not immediately known. The county might need to tap a wetlands mitigation bank to offset any loss of wetlands, the source told The State.
To make the project work, the company would need other environmental approvals, including air pollution permits. So far, the company has not applied for an air pollution permit, said Laura Renwick, a spokeswoman for the S.C. Department of Health and Environmental Control.
McMaster, Keogh and S.C. Secretary of Commerce Harry Lightsey will host a virtual media roundtable Monday morning to discuss further details about the announcement.
Joseph Bustos contributed reporting.
This story was originally published March 3, 2023 at 11:36 AM.
