In a significant operation conducted by U.S. authorities, numerous employees at a Hyundai Motor plant under construction in Georgia have been apprehended, leading to a temporary halt in the building of a car battery factory that forms part of a substantial investment in the state by the South Korean carmaker.
The raid, which took place on Thursday, has posed a setback to a project that was slated to commence operations later this year. It underscores a growing crackdown by the Trump administration on immigrants and its disruptive consequences on businesses, despite efforts by the White House to encourage more foreign investments.
This series of arrests also has the potential to strain the relationship between Washington and Seoul, key allies and investors in each other’s countries. The discord revolves around the specifics of a trade deal that encompasses $350 billion US in investments.
Only recently, South Korea pledged $150 billion in U.S. investments, with $26 billion coming from Hyundai Motor, during a summit between the two nations.
The South Korean Foreign Ministry expressed concerns over the detention of “many of our nationals” during the U.S. immigration operation, emphasizing that the economic activities of South Korean companies and the rights of their citizens should not be unjustly infringed upon during U.S. law enforcement actions.
An official from the U.S. Department of Homeland Security (DHS) mentioned that multiple U.S. agencies had executed a legally sanctioned enforcement operation to investigate unlawful employment practices. Arrests have been made, as confirmed by Steven Schrank, the special agent in charge of Homeland Security Investigations for Georgia, in a televised news briefing.
According to reports, approximately 450 individuals were detained, with some being held at a United States Immigration and Customs Enforcement (ICE) detention facility. Sources in the industry reported that around 560 workers from the Hyundai Motor facility and LG Energy Solution had been detained, with 300 of them being South Korean nationals.
The Hyundai-GA battery company spokesperson stated that they are fully cooperating and have suspended construction activities. The facility, a joint venture between LG Energy Solution and Hyundai Motor, was scheduled to commence operations by year-end.
Hyundai Motor assured that the production of electric vehicles at the site remains unaffected. LG Energy Solution affirmed its close cooperation with the South Korean government and relevant authorities to ensure the safety of its employees and contractors and to secure their prompt release from detention. Consequently, LG Energy Solution’s shares experienced a 2.3% decline.
In a joint venture announced in 2023, Hyundai Motor Group and LG Energy Solution disclosed a $4.3 billion venture to manufacture EV battery cells, with each company holding a 50% stake. This plant is intended to supply batteries for Hyundai, Kia, and Genesis EV models.
The battery factory forms part of Hyundai’s $12.6 billion investments in the state, including the recently inaugurated car factory, marking the largest economic development project in the state’s history.
Video footage circulating on social media depicted a Homeland Security Investigations (HSI) official instructing workers at the site to cease all construction activities immediately due to a search warrant.
Under President Donald Trump’s leadership, the Immigration and Customs Enforcement agency has intensified its crackdown on migrants, with a focus on non-criminals, eliciting criticism from rights advocates.