LG Energy Solution (LGES) has suspended construction of its battery factory in Georgia after U.S. immigration raids led to the arrest of hundreds of workers at the site and at Hyundai Motor’s nearby electric vehicle plant, the South Korean company said.
The raids, conducted last Thursday by nearly 500 agents from Immigration and Customs Enforcement (ICE) and other federal authorities, resulted in 475 arrests, including more than 300 South Korean nationals. The sweep targeted Hyundai’s U.S. electric vehicle plant, known as HMGMA, and the battery facility it is jointly developing with LGES.
LGES had already pushed back the start of production at the battery plant to 2025, citing weak market conditions. A company spokesperson told South Korean media it was “too early to say whether recent events would affect the plant’s operations.” Hyundai has reportedly banned all U.S. business trips for its employees.
South Korea’s government said it was in talks with Washington to secure the release of the detained workers. “To prevent similar incidents in the future, we will review and improve the accommodation and visa system for those on U.S. project business trips,” said Presidential Chief of Staff Kang Hoon-sik.
Hyundai and LGES have pledged $7.6 billion in Georgia, a project described by state Governor Brian Kemp as the largest economic development initiative in state history. But the incident has raised concerns over visa access for South Korean specialists and the long-term viability of the investment.
Kang DaeKwun, chief investment officer at Life Asset Management, said the case underscored the challenges of investing in the U.S. “Return on investment was already getting low due to inflation, and now companies face hiring challenges as well,” he said.