Environment
Hyundai is now delaying its EV battery plant that was raided by ICE
Construction on Hyundai’s electric vehicle battery site that was raided by ICE last week is now facing more setbacks. Hyundai is delaying work at the EV battery plant as the detained workers are expected to fly home on Thursday.
Hyundai is delaying its EV battery plant raided by ICE
During an interview on Thursday, Hyundai’s CEO José Muñoz announced the site will be delayed by at least a few months following the raid.
“This is going to give us minimum two to three months delay, because now all these people want to get back,” he said. Hyundai needs to fill the positions, and as Muñoz explained, “for the most part, those people are not in the US.”
The sudden announcement comes after federal agents raided the battery plant site on September 4, detaining 475 workers.
Hyundai co-owns the plant with LG Energy Solutions, which is set to supply batteries to its nearby production site, the Hyundai Motor Group Metaplant America (HMGMA).
Although a charter plane is waiting in Atlanta to fly the workers home, the raid is already sparking backlash. South Korean ministry spokesperson Lee Jae-woong warned that “The economic activities of our companies investing in the US and the rights and interests of our nationals must not be unfairly violated.”
The raid occurred just days after South Korean President Lee Jae Myung met with President Trump at the White House, pledging to invest another $150 billion in the US, including a new EV battery plant.
However, after videos and images showed the detained workers shackled before being transferred onto buses, the operation is fueling outrage among South Koreans and will likely have bigger economic implications.
Hyundai and LG’s battery plant is just one of 20 sites under construction in the US by a South Korean company. Several LG Energy Solutions’ construction sites have already been disrupted, while others fear similar crackdowns may follow.
Hyundai currently builds the new IONIQ 5 and larger IONIQ 9 electric SUVs at the production plant. The site in total spans about 3,000 acres, including the assembly facility, EV battery plants, and various other parts plants.
Electrek’s Take
The raid on Hyundai’s plant was frankly an embarrassment and will likely have much bigger impacts. Hyundai pledged to invest $12.6 billion in Georgia, creating 8,500 new jobs, marking the state’s largest economic project to date.
A Center for Automotive Research report found that Hyundai’s EV plant would generate over 50,000 new jobs indirectly, including suppliers and joint battery ventures.
Donald Trump has made it clear that he wants to arrest and deport as many “illegal” immigrants as possible, but he also wants to bring manufacturing back to the US.
The Hyundai plant raid is just another setback for the US auto industry. It has put thousands of new jobs and billions in investments at risk. It ultimately puts the US further behind China, South Korea, and others who are quickly emerging as powerhouses with advanced new batteries, software, and other EV tech.
Trump’s raid on the Hyundai plant could give a new meaning to the “Trump Slump” as fear spreads over similar crackdowns.
Source: Bloomberg
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