Hyundai Motor’s battery plant in Georgia is facing a minimum startup delay of two to three months following a U.S. immigration raid last week, Hyundai CEO Jose Munoz said Thursday.
The plant, operated through a joint venture between Hyundai and South Korea’s LG Energy Solution, is part of a $7.6 billion factory complex designed to produce batteries for electric vehicles. It was scheduled to begin operations later this year, News.Az reports, citing Reuters.
“For the construction phase of the plants, you need specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz said at an automotive conference in Detroit.
The raid, described as the largest single-site enforcement operation in U.S. Department of Homeland Security history, resulted in the detention of 475 workers, including over 300 South Koreans. Most of the workers at the center of the raid were employed by LG suppliers rather than Hyundai directly.
U.S. officials cited concerns over the “unlawful” visa and immigration status of the workers. Arrangements are now underway to fly the detained employees back to South Korea, following agreements between Seoul and Washington to discuss a visa program for essential workers at South Korean construction projects in the U.S.
Hyundai Motor Group Executive Chair Euisun Chung expressed relief over the workers’ return and emphasized the need for better visa systems for specialized labor.
“Maybe our government and the U.S. government… can make a better system together,” Chung said.
While the LG-operated plant remains delayed, Hyundai plans to source batteries from other facilities, including a Georgia plant co-owned with Korean battery-maker SK On.
The raid’s fallout has affected other LG plants in the U.S., including facilities co-owned with GM, where workers were asked to return home.
“This incident shows how critical specialized labor is for battery plant construction,” Munoz noted, highlighting the challenges the company faces in ramping up production.
