South Korean automaker Hyundai Motor Group (HMG) has confirmed that it expects the raid by US immigration authorities on the construction site of its new electric vehicle (EV) battery manufacturing JVe with South Korea’s LG Energy Solution, in the US state of Georgia, will likely delay completion of the plant by up to three months.
The HL-GA Battery Company plant was scheduled to be completed by the end of the year, to supply batteries to the newly-built Hyundai Motor Group Metaplant America nearby, which has a production capacity of 300,000 hybrid and battery-powered passenger vehicles per year.
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The raid resulted in the detention of 475 people, 300 of whom were specialist automotive industry personnel from South Korea employed to install advanced manufacturing facilities and equipment at the plant. They have since been repatriated back to South Korea, on a flight chartered by the South Korean government.
The raid came as a shock to South Korea, which has been investing heavily in expanding its manufacturing presence in the US. During recent trade talks with the US, South Korea committed to investing US$ 350 billion in the US in the medium term.
Hyundai Motor Company’s CEO, Carlos Munoz, speaking on the sidelines of the Automotive News Congress in Detroit, said that it is “typical” for automotive companies to bring in highly skilled workers from outside during the construction stages of a plant. He pointed out that “for the construction phase of new plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the US.”
Munoz confirmed that HMG will source batteries from other plants in the region while waiting for construction of the new plant to be completed and for operations to begin. The automaker also has a battery manufacturing joint venture in Georgia with South Korea’s SK On Company.
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By GlobalDataMr Munoz said he hoped Seoul and Washington will work together to establish a better visa system, to make it easier for foreign investors to bring in skilled workers on a temporary basis to build new manufacturing operations. The South Korean government is also understood to be requesting that a new visa category be set up for this purpose.
Despite the setback, Mr Munoz confirmed that HMG remains fully committed to investing in the US, which is by far the company’s largest single market globally – with more than 1.7 million Hyundai, Kia and Genesis branded vehicles delivered there in 2024.
