Hyundai Battery Facility Encounters Significant Startup Delay After U.S. Immigration Enforcement
- 475 workers detained, predominantly South Koreans
- Hyundai to procure batteries from alternative sites during this interim
- Employees at other LG facilities were instructed to return home post-raid
DETROIT, Sept 11 (Reuters) – Hyundai Motor’s joint venture battery plant is anticipated to experience a startup delay of no less than two to three months, following a recent immigration enforcement operation, as stated by CEO Jose Munoz on Thursday.
The facility, situated in Georgia and collaboratively managed with South Korea’s LG Energy Solution, became the focal point of the most extensive single-site enforcement action in the history of the U.S. Department of Homeland Security.
In his initial remarks since the incident, Munoz expressed astonishment at the news, prompting immediate inquiries regarding the involvement of Hyundai personnel. He clarified that the majority of individuals impacted by the raid were primarily employed by LG’s suppliers.
“To erect these plants, specialized labor is essential. Many skills and equipment requisite for this endeavor are not readily available within the United States,” Munoz commented during an automotive forum in Detroit.
This facility is an integral component of a $7.6 billion manufacturing complex aimed at producing battery-operated vehicles, initially slated for completion later this year.
U.S. immigration authorities reported the detention of nearly 475 individuals, over 300 of whom are South Korean nationals, amid concerns regarding their visa and immigration statuses.
A departing flight will return these workers to South Korea from Atlanta, following negotiations between the governments of Seoul and Washington concerning their release and the establishment of a visa program to facilitate the employment of essential personnel at such construction sites controlled by South Korean enterprises.
Hyundai Motor Group Executive Chair Euisun Chung conveyed his profound concern regarding the occurrence but expressed relief at the workers’ safe return to South Korea.
Chung noted, “It is essential for both our government and the U.S. administration to collaborate closely, especially given the complexities surrounding visa regulations.”
According to Munoz, it is customary for an automotive battery facility to engage these specialized workers during its progressive phases.
As the company awaits the operational commencement of the LG plant, Hyundai plans to source batteries from its alternative manufacturing stations, including a co-owned Georgia plant with SK On, a Korean battery manufacturer.
The repercussions of the raid have reverberated throughout the country. Reports indicate that workers at other LG facilities, including those in partnership with GM, have been instructed to return home.
Reporting by Nora Eckert; supplemented by Hyunjoo Jin in Seoul; Edited by Franklin Paul, Lisa Shumaker, Rod Nickel, and Ed Davies.
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Hyundai battery facility faces significant startup delays following U.S. raid, source
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