Immigration Raid Poses Risk to Billions in U.S. Electric Vehicle Initiatives | Carscoops

Immigration Raid Poses Risk to Billions in U.S. Electric Vehicle Initiatives | Carscoops

      Hyundai and LG Energy Solutions responded to Trump’s request to manufacture in America, resulting in a significant immigration raid, arrests, and halted projects.

      **Immigration Raid at Hyundai-LG Georgia Battery Plant Detains 300 Korean Workers**

      Construction has halted across various U.S. sites, jeopardizing billions in EV investments.

      Outrage in Seoul heightens diplomatic tensions; President Lee pledges to ensure worker protections.

      The Trump administration encouraged global automakers to "build it in America," and Hyundai Motor Group along with LG Energy Solutions followed suit by investing billions in U.S. battery factories to support the EV transition.

      Recently, immigration authorities conducted a raid at a Georgia plant where the Korean consortium was boosting production, resulting in the detention of nearly 300 Korean nationals, sparking a diplomatic dispute, and freezing projects nationwide.

      **Visa Complications at the Facility**

      The sweep involved arrests of close to 500 individuals seemingly residing in the U.S. unlawfully. Upon closer examination, it was revealed that around 300 were Koreans present on ESTA or B-1 visas, which permit short-term business activities like equipment installation and training. These workers were essential in preparing the plants for operation.

      While some may have overstepped their visa allowances, many were legally present to aid in launching the facilities that the administration had advocated for. Bloomberg reported that this incident has not only disrupted operations at the Georgia factory but has also led to shutdowns of multiple other plants. Korea is reportedly sending a plane to the U.S. on Wednesday to repatriate all detained workers, with the company's CEO accompanying the flight.

      Chang Sang-sik, head of the Korea International Trade Association's International Trade and Commerce Research Center, expressed that companies would feel humiliated and ashamed seeing their staff treated this way, especially to the extent of facing bans from the U.S.

      **Engineers on Alert**

      Chang noted that the initial batch of engineers sent to kickstart factory operations is often comprised of top-tier talent. However, he cautioned that after this incident, persuading them to relocate to the U.S. will be challenging, regardless of financial incentives or prestige.

      “Without clear assurances that workers won't encounter such scenarios, it will become increasingly difficult for companies to invest in the U.S. moving forward,” he stated.

      A worker familiar with the short-term visa process described the prospect of replacing South Korea’s experienced battery experts with new U.S. hires as “completely unrealistic.” He explained to Bloomberg that these projects rely heavily on seasoned specialists to initiate plant operations before American teams can take over maintenance. Following the raids, he asserted there's no chance he would return without foolproof documentation.

      **Billions at Stake**

      The Georgia facility represents just a segment of a larger expansion by LG Energy. Additional plants in Arizona, Michigan, and Ohio are slated to commence operations next year to supply Hyundai, GM, and Honda. Currently, those facilities are reportedly on hold. LG has instructed all workers and contractors in the U.S. under the ESTA or B-1 visa program to return to Korea.

      The key question is when and if they will return. If not, their absence could jeopardize billions in investments. Given that this outcome contradicts the Trump administration’s stated objectives, one must question whether the raid was a prudent action.

Immigration Raid Poses Risk to Billions in U.S. Electric Vehicle Initiatives | Carscoops

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Immigration Raid Poses Risk to Billions in U.S. Electric Vehicle Initiatives | Carscoops

Hyundai and LG Energy Solutions responded to Trump's appeal to manufacture in America, but the outcome was a raid, arrests, and delayed projects.