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Hot on the feels of Scout Motors announcing that it will establish a $2 billion factory in Columbia, South Carolina, it’s been revealed that it received a $1.3 billion incentive package to set up shop in the state.

The Volkswagen Group will sell electric SUVs and pickup trucks through the Scout Motors brand and expects to commence production in 2026. It decided on the site in Blythewood after having looked at 74 sites in the South, Midwest, and Western areas of the United States, Scout chief executive Scott Keogh recently told Auto News.

Read: Scout Motors Teases New SUV And Pickup EVs As It Confirms $2B South Carolina Factory

The generous incentive package was signed into law by South Carolina Governor Henry McMaster on March 20. It consists of a $400 million grant to Scout Motors for “hard assets as determined by the company,” and $650 million for the construction of a new I-77 interchange, a new railway bridge, water and wastewater infrastructure, mass grading, and wetlands mitigation, as well as area road improvements to mitigate traffic problems for residents.

VW’s Scout Getting $1.3 Billion Incentive Package For South Carolina Factory

The incentive package from the Department of Commerce also includes $16 million to acquire property to connect to the Class I rail mainline and a $200 million loan for soil stabilization that will be repaid by Scout Motors with 5% interest.

Speaking with WIS, Keogh said there were three key factors that convinced Scout to select the site in South Carolina.

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“I think the first thing, obviously, is the infrastructure,” he said. “I think, as you can imagine, a site like this is immensely complicated. People think, ‘Well, it’s just land and land is land.’ But of course, you need the infrastructure behind it, the logistics, you need rail, you need water, you need energy. And so that whole package was ready to go, which was exciting. I think the most important thing, and the second thing, of course, is the talent. You need a workforce that’s motivated, you need a workforce of course that has the education levels and everything that’s needed to succeed. And then the third thing, which was probably one of the biggest ones as well is the state was absolutely ready.”

VW’s Scout Getting $1.3 Billion Incentive Package For South Carolina Factory