Several hundred workers at an electric vehicle battery joint venture between Hyundai Motor Co. and LG Energy Solution Ltd., which is currently under construction in Georgia, have been detained in a major raid by US authorities.
The raid on Thursday has dealt a setback to the project, which is part of what would be the biggest investments in the US state. It illustrates the increasing crackdown by the Trump administration on immigrants and its impact on businesses.
Analysts and corporate executives in Seoul said the raid is raising fears that the US crackdown could disrupt other multibillion-dollar manufacturing projects in semiconductors and batteries, possibly hurting US ambitions to tighten its grip on global supply chains.
Nearly 500 employees, including LG Energy staff, subcontractors and engineers from Hyundai Engineering, were taken into custody on Thursday morning by agents from the US Immigration and Customs Enforcement (ICE) and the Homeland Security Investigations (HSI), according to people familiar with the matter.
Workers at the Hyundai Motor-LG Energy Solution battery JV in the US state of Georgia are raided and detained The raid, which also involved the Drug Enforcement Administration (DEA) and Georgia state troopers, saw armed officers seal off the site in the town of Ellabell, Bryan County, west of Savannah, with helicopters and armored vehicles.
One eyewitness described the scene as “like a military operation.”
The 50-50 JV between Hyundai and LG is considered one of Georgia’s largest and most high-profile manufacturing sites.
CUSTODY COULD DISRUPT PLANT COMMISSION, OTHER PROJECTS
The detained employees are alleged to have been working on the site without proper work permits, having entered the US under the Electronic System for Travel Authorization (ESTA) or short-term B1 business visas.
Hyundai Motor Group Metaplant America (HMGMA), the Korean automaker's manufacturing facility in Ellabell, Bryan County, west of Savannah, Georgia The $6.3 billion joint venture battery facility, among the largest projects in Georgia and is expected to create 8,500 jobs, is scheduled for completion later this year to supply battery cells to Hyundai’s nearby EV factory, Hyundai Motor Group Metaplant America LLC (HMGMA).
To prepare the site for commercial operation, LG and its partners have dispatched hundreds of engineers on short rotations, many of whom used 90-day ESTA allowances, sources said.
Industry executives warned that the custody of the workers could disrupt the plant’s commissioning and affect other Korean projects in the US.
Construction work on the battery JV facility was suspended following the raid.
Workers at the Hyundai Motor-LG Energy Solution battery JV in the US state of Georgia are raided and detained Korean conglomerates, including semiconductor giants Samsung Electronics Co. and SK Hynix Inc., are heavily investing in US chip facilities, while Samsung SDI Co. and SK On Co. are building battery plants with their partners GM and Ford, respectively. Several of these sites rely on rotating teams of Korean engineers.
“This puts Korean workers in a precarious situation,” said an industry executive. “Washington wants rapid onshoring of advanced manufacturing facilities, but refuses to provide necessary visa allocations that would allow Korean specialists to transfer their know-how.”
Industry officials said Seoul needs to secure a dedicated visa quota with Washington, similar to arrangements the US has with Australia and Singapore.
“We are investing trillions of won in the US, but getting no visa support,” said a corporate executive in Seoul.
Workers at the Hyundai Motor-LG Energy Solution battery JV in the US state of Georgia are raided and detained
KOREAN GOVERNMENT RAISES CONCERN
The Korean government raised concerns over the detentions, saying that the incident is “regrettable.”
“The economic activities of our companies investing in the US and the rights and interests of our nationals must not be unfairly violated,” Seoul’s Ministry of Foreign Affairs said in a statement.
A Hyundai official said the company is cooperating with US law enforcement and is committed to abiding by all labor and immigration regulations.
An executive at the Hyundai-LG battery JV said the company "is cooperating fully with the appropriate authorities regarding activity at our construction site. To assist their work, we have paused construction.”
Sources said the Korean consulate in Atlanta is forming a legal team to handle the matter.
Write to Jin-Won Kim, Woo-Sub Kim and Eui-Myung Park at jin1@hankyung.com In-Soo Nam edited this article.
