TLDRs;
- U.S. detains 475 workers at LG-Hyundai battery site in Georgia over suspected visa misuse, sparking global scrutiny.
- LG suspends all U.S. business travel and orders visa waiver participants to return to Korea immediately.
- Hyundai reviews supplier compliance after subcontractor workers remain in detention, with diplomatic talks underway.
- EV industry faces possible delays as immigration enforcement intersects with critical infrastructure projects.
South Korea’s LG Energy Solution has suspended all business trips to the United States after U.S. immigration authorities detained nearly 475 workers at the construction site of HL-GA Battery Co., a joint venture with Hyundai Motor Group in Georgia.
The September 4, 2025, raid has sparked intense scrutiny of labor practices and visa compliance in the electric vehicle (EV) supply chain, raising fresh concerns for global manufacturers reliant on cross-border labor.
Hundreds of workers detained in Georgia
The detentions occurred at a large battery plant currently under construction, intended to serve as a cornerstone of Hyundai and LG’s EV partnership in the U.S.
According to LG Energy Solution, 47 of its direct employees and around 250 workers from partner companies, mostly South Korean national, were among those taken into custody. Hyundai Engineering also confirmed that about 170 subcontracted workers remain in U.S. detention facilities as investigations continue.
U.S. authorities have not officially disclosed the reasons behind the operation. However, industry observers suggest the investigation centers on the use of improper visa categories, particularly B1 and B2 visitor visas, as well as the Visa Waiver Program. These visas permit entry for meetings, negotiations, or tourism but explicitly prohibit paid labor.
LG halts travel and issues warnings
In response to the detentions, LG Energy Solution has taken immediate measures to protect its workforce. The company announced the suspension of all business trips to the U.S. and advised employees currently in the country on visitor visas to remain at their residences.
In addition, participants traveling under the Visa Waiver Program were directed to return to Korea to avoid potential legal complications.
“Ensuring compliance with U.S. labor and immigration laws is now a top priority,” an LG spokesperson said, underscoring the company’s efforts to cooperate with authorities and prevent further risks.
Hyundai adopts cautious approach
Hyundai Motor America emphasized that none of its direct employees were detained during the raid but acknowledged the importance of reviewing supplier compliance practices.
The company indicated it would work closely with its partners to ensure all labor arrangements meet U.S. requirements.
Meanwhile, Hyundai Engineering said it is coordinating with consular services to provide support for subcontracted workers still in custody. The situation has already drawn diplomatic attention, with the South Korean government reportedly engaging in negotiations to secure the release of detained nationals.
Broader implications for the EV sector
This large-scale enforcement action echoes past U.S. workplace raids, such as the 2006 Swift meatpacking operations that led to 1,300 detentions and the 2019 Mississippi food processing raids involving 680 workers.
By targeting a critical infrastructure project in the EV supply chain, U.S. authorities have heightened industry concerns about potential production delays at a time when global demand for batteries is surging.
For Korean firms, the case highlights ongoing challenges in securing appropriate work permits for overseas projects. Reliance on visitor visas, often seen as a gray area workaround, now risks escalating into both legal and diplomatic crises. As the EV race intensifies, compliance with immigration laws may prove just as critical as technological innovation in determining which companies maintain a competitive edge.
