Foreign automakers have been establishing manufacturing and battery plants in the US for years, creating jobs and contributing billions to the economy. Recently, two South Korean companies, Hyundai and LG Energy Solutions, began construction on a $7.6 billion EV battery factory in Georgia, sending hundreds of their employees to oversee the project.
However, the plant faced a setback when ICE officers raided the facility, detaining 475 workers, mostly South Koreans. This action raised concerns about human rights violations and sent a negative message to foreign investors.
The raid led to delays in the plant’s opening, prompting Hyundai to allocate an additional $2.7 billion for construction. The long-term effects of the incident could impact not only Hyundai but also its suppliers and subcontractors.
The uncertainty caused by the raid has implications for the entire EV industry in the US. With policy changes and disruptions in the supply chain, companies like Hyundai are reevaluating their investments in the country.
The incident highlights the need for stable and predictable regulations to attract and retain foreign investment. As the industry navigates these challenges, the future of EV production in the US remains uncertain.
