Scout Motors Puts Itself On A Rare Earth Diet

With automakers getting squeezed on rare earth minerals, Volkswagen Group-backed startup Scout Motors is making changes. The company’s CEO Scott Keogh recently told Bloomberg TV Scout is exploring alternative materials to reduce reliance on supplies that come from China.

Nissan is considering breaking open the piggy bank in a desperate move.

That’s a wise move considering how adversarial China is towards the West, something which could become more pronounced as the situation with Iran or any number of other geopolitical hotspots develops.

We all saw firsthand what shortages did to the auto industry back during covid shutdowns. With items like chips and aluminum in short supply, automakers had to idle assembly lines, make adjustments, and do without.

Scout is smart to see trouble on the horizon and start rearranging the table when it’s easier to pull off. Keogh specifically mentioned redesigning brake systems and drive units to reduce how much rare earths are necessary.

Jim Farley, CEO of Ford, already admitted his company has just a few days’ supply of rare earth minerals. He also disclosed that some factories which have been idled was due to that supply running dry.

China has been using its dominance in rare earth minerals to beat up the US in trade talks. There’s a plan in place to establish rare earth supply chains in this country, but that will take time. Meanwhile, automakers have to deal with China’s whims.

Moving forward, we wonder if other automakers are going to engineer new models so they require fewer rare earths that current designs. After all, it’s unlikely this issue is just going to go away suddenly and it could become far more pronounced, depending on global events.

Both the Scout Terra truck and Traveler SUV are slated to launch into the market in 2027. They will be available as pure EVs as well as EVs with gas-powered range extenders.

Image via Scout Motors