ICE at Hyundai-LG Battery MegaFactory Demonstrates Inefficiency in Electrification Process

In a surprising turn of events, a large-scale immigration enforcement action was conducted at the Hyundai-LG battery facility under construction in Ellabell, Bryan County, Georgia, on September 4, 2025. The operation, led by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Georgia State Patrol, U.S. Customs and Border Protection (CBP), and the Georgia Department of Labor, resulted in the detention of approximately 475 individuals, most of whom were South Korean nationals.

This incident has triggered immediate diplomatic concern, with South Korea demanding explanations and calling the arrests "unfair violations" of its citizens' rights. The public release of video footage depicting shackled detainees has strained relations between the two nations, with South Korea finding the timing "regrettable" amid broader trade talks and investment negotiations.

The detained individuals were not direct employees of Hyundai Motor Company but were employed by subcontractors within the battery plant project. The arrests have put a pause on the construction of the Hyundai-LG battery plant project, which was designed to supply batteries locally for Hyundai's EV assembly.

Hyundai has pledged to review its labor practices across its supply chain and has a "zero-tolerance policy" for violations. LG Energy Solution, Hyundai's battery partner, has suspended overseas business trips and dispatched senior HR staff to handle the situation.

The incident risks souring the climate for cooperation on clean energy between the U.S. and South Korea. It could potentially spook other foreign investors and complicate trilateral industrial collaborations. Investors may now demand higher scrutiny around labor compliance and geopolitical risk in large-scale projects tied to foreign direct investment, potentially slowing the pace of global EV factory rollouts.

The Trump administration may expand similar enforcement actions to other industries, raising concerns for businesses highly dependent on large workforces, especially in regions like the Southeast. The incident has increased the need for stricter audits, increased use of verification systems like E-Verify, and tighter control over contractors in the industry to mitigate the risk of undocumented labor or visa abuses.

As the situation unfolds, both nations are navigating the complexities of labour practices, diplomacy, and international business, with the potential for long-lasting effects on the clean energy sector and US-South Korea relations.