On September 4, 2025, U.S. immigration agents suddenly raided the Hyundai-LG Energy Solution battery plant located in Ellabell, Georgia. That order shuttered operations at the Detroit facility, which is part of a $4.3 billion joint investment with Ford to make batteries for electric vehicles. Operating in a climate of extreme secrecy, the raid netted 475 arrests. Among them, around 300 were South Koreans, raising alarms about exploitative labor practices and the US-South Korean diplomatic relationship.
Hyundai Motor and partner LG Energy Solution have agreed to a $5.5 billion joint venture to establish a new plant. Soon after construction began in earnest, U.S. authorities executed a search warrant. This singular raid has created a fierce diplomatic standoff, capturing the attention of businesses and politicians in both countries. At the time of the incident, a chartered plane was departing from Hartsfield–Jackson Atlanta International Airport. It was transporting a mix of detainees, with 14 foreign staff from South Korean firms on board. The flight was notable as nearly all South Korean nationals in detention are returning to South Korea voluntarily.
Hyundai CEO Jose Munoz was vocally surprised by the immigration action. He emphasized that these actions are typically uncommon for the initiation of projects of this magnitude and nature. Walker stressed the need for skilled labor during the construction phase for plants such as the one coming to Ellabell. Munoz stated, “For the construction phase of the plants, you need to get specialized people,” further elaborating that “there are a lot of skills and equipment that you cannot find in the United States.”
The controversial raid directly precipitated Munoz’s announcement. He said that construction at the battery plant will be pushed back at least two to three months from when it would have opened otherwise. This loss stings especially as the nation’s automotive industry pivots toward electric vehicles. Finishing the plant on time is extremely important for the two companies, and the broader EV market.
Admitting they were caught flat-footed by the outbreak, South Korea’s Foreign Ministry described their response as a “whole-of-government response.” They are deeply engaging with impacted firms to address the myriad complexities that arose from that raid. The ministry is currently engaged in extensive advocacy efforts to ensure that visa-related cooperation between the two governments continues in the coming years.
The immigration raid at the new Hyundai-LG Energy Solution battery plant is responsible for stoking rampant fears about U.S. labor practices. It has further sharpened concerns over our reliance on foreign labor for specialized positions needed to launch new industrial developments. The effects for future partnerships in the burgeoning electric vehicle manufacturing industry remain to be seen.