Hyundai CEO José Muñoz on Thursday stated that the U.S. Immigration and Customs Enforcement (ICE) raid at the Georgia-based Hyundai EV battery plant last week will likely postpone the facility’s opening by several months.
José Muñoz said that the enforcement action has left the battery plant, jointly run by Hyundai and LG Energy Solutions, with a significant worker shortage. On September 4, ICE conducted a raid at the Hyundai-affiliated battery facility in Georgia, detaining hundreds of employees, many of whom were South Korean nationals. As a result, the plant is now expected to face a startup delay of two to three months.
“For the construction phase of the plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz said, as reported by Reuters.
The facility, one of the major industrial projects underway by South Korean firms in the U.S., was scheduled to launch operations later this year and planned to employ thousands of American workers.
The raid has heightened diplomatic strain between the United States and South Korea. In response, South Korea’s president cautioned that the incident could deter future foreign investment in the U.S.
Hyundai is currently manufacturing the new IONIQ 5 and the larger IONIQ 9 electric SUVs at the facility. The entire site covers roughly 3,000 acres and includes the main assembly plant, EV battery production units, and several other component factories.
With the delay, Muñoz said Hyundai will obtain batteries from alternative facilities, including a Georgia plant it jointly operates with South Korean battery manufacturer SK On.
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