U.S. raid detains nearly 500 workers at Hyundai-LG EV plant over visa violations.
LG Energy delays Georgia plant opening; Hyundai halts $5.5B construction project.
South Korea urges reassessment of U.S. investments as immigration and visa concerns grow.
An immigration enforcement operation, the largest in U.S. history, at a Hyundai-LG battery plant in Georgia has disrupted several clean energy construction sites and ignited political and diplomatic fallout between the United States and South Korea.
The September 4 raid, led by U.S. Immigration and Customs Enforcement (ICE), resulted in the detention and shackling of nearly 500 workers, mostly South Korean nationals. The affected workers were reportedly employed under B-1 business visas or through the ESTA visa waiver program, neither of which authorizes employment in the U.S. ICE stated that the raid followed a months-long investigation into “fraudulent use of visitors’ visas.”
The facility, operated by HL-GA Battery Company, a joint venture between Hyundai Motor Group and LG Energy Solution, is or was a cornerstone of Hyundai’s planned $5.5 billion EV assembly and battery plant in Ellabell, Georgia. Construction at the site has since been paused, and LG Energy announced a delay in the plant’s opening until the first half of 2026.
Hyundai IONIQ 6 N Debuts at Goodwood: A New Chapter in High-Performance
The incident has led South Korean lawmakers to call for a suspension of ongoing investments in the U.S. until worker protections are guaranteed. President Lee Jae Myung, addressing the issue in a cabinet meeting, said, “I hope there will never again be any unjust infringements on the activities of our citizens and businesses working for the joint development of South Korea and the U.S.”
In response to the raid, LG Energy has instructed all workers travelling under ESTA to return to South Korea and advised B-1 visa holders to remain in their accommodations. Internal guidance from the company, cited by people familiar with the matter, indicates widespread concern about legal exposure for foreign technical staff.
The effects of the incident have extended to other LG Energy and Hyundai sites, with reported disruptions at plants under construction in Arizona, Michigan, and Georgia. However, SK On, another South Korean battery manufacturer, denied reports that construction at its Georgia site has been suspended.
Honda, which is jointly developing a plant in Ohio with LG Energy, stated that it has not experienced any delays and complies with all U.S. laws regarding employment authorization.
The situation boils down to the following: Foreign firms such as LG Energy rely heavily on highly trained South Korean engineers to set up complex battery manufacturing facilities in the U.S., a process that cannot be easily replicated by domestic labour. A person familiar with operations said replacing these specialists with local hires is unrealistic, as these workers possess specific, home-trained expertise essential for plant commissioning and system integration. Once systems are established, U.S. workers can take over once trained, but initial deployment depends on foreign skilled labour.
This U.S. immigration crackdown has made skilled Korean staff reluctant to travel, even under company pressure, due to legal risks associated with short-term visas. With 22 battery-related projects underway by Korean firms, executives warn that visa restrictions and enforcement actions could severely disrupt timelines.
The immigration crackdown also coincides with stalled trade negotiations between Washington and Seoul. In July, both governments announced a $350 billion South Korean investment pledge to support clean energy and shipbuilding in the U.S., including $150 billion in direct investment by private firms.
Analysts note that while the raid may not derail long-term Korean investment in the U.S., it has shone a bright light on policy tensions between efforts to attract foreign manufacturers and the enforcement of immigration laws.
The bottom line is that the U.S. market remains strategically vital for Korean and Japanese firms. Incidents like the recent raid increase operational complexity; they may also push firms to tighten compliance and reinforce their commitment to U.S. labour regulations.
Source: Automotive News
