Delays Hit Hyundai's Battery Plant After U.S. Immigration Raid
Following the largest single-site immigration enforcement action in U.S. history, Hyundai says its joint-venture battery plant with LG Energy Solution will be delayed at least two to three months.
Key Points
- Hyundai’s $7.6B Georgia battery plant delayed at least two to three months after a massive U.S. immigration raid detained 475 workers, most of them South Korean nationals.
- Workers sent home on charter flights, with Washington and Seoul now discussing a potential visa program to cover specialized labor needed for large-scale battery facilities.
- Hyundai to bridge supply gap by sourcing batteries from other plants, including its Georgia joint venture with SK On, as fallout spreads to other LG-affiliated U.S. factories.
The facility—part of a $7.6 billion complex meant to supply Hyundai and Kia’s next wave of EVs—was originally scheduled to come online later this year. Reuters reports the construction timeline has now been pushed back after 475 workers, including more than 300 South Korean nationals, were arrested during last week’s raid— many of whom did not have valid work visas.
Hyundai CEO Jose Muñoz admitted he was caught off guard by the news, he stressed that the detained workers were employed by LG’s suppliers, not directly by Hyundai. “For the construction phase of the plants, you need specialized people. There are a lot of skills and equipment you cannot find in the United States,” Muñoz explained.
A charter flight has already begun shipping many of the detained people home to South Korea after Washington and Seoul worked out an agreement. Both governments are now expected to discuss a potential visa program tailored for specialized workers at large-scale battery facilities.
In the meantime, Hyundai will source batteries from other plants, including another Georgia facility it co-owns with Korean battery-maker SK On. Still, the ripples from the raid are moving beyond Georgia. Workers at other LG-affiliated plants, including joint ventures with General Motors, have reportedly been asked to return home as well.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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WOW, just more cost to the price of automobiles in this country
I worked for many years in the car industry in the UK and know well the complexities of opening, and closing, plants.
Having watched these events closely I can only suggest less poorly informed comments, not just here , and a bit more thoughtful analysis of the skill sets and planning involved to get a plant such as this delivered in a very compact timeframe.