Hyundai facility construction in Georgia paused until 2026

A Hyundai battery plant is facing a startup delay of at least two to three months after last week’s immigration raid, CEO Jose Munoz said Thursday.

The Georgia facility, a joint venture between Hyundai and South Korea’s LG Energy Solution, was the site of the largest single-site enforcement action in the history of the U.S. Department of Homeland Security. The plant, part of a $7.6 billion complex intended to produce battery-powered models, had been scheduled to begin operations later this year.

Speaking publicly for the first time since the raid, Munoz said he was caught off guard by the news and immediately asked whether Hyundai employees were involved. He explained that the workers targeted in the raid were primarily employed by LG suppliers.

U.S. immigration authorities reported roughly 475 arrests, mostly South Korean nationals. Munoz noted that it is common for auto battery plants to bring in specialized foreign workers during the construction phase. “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,” he said on the sidelines of an automotive conference in Detroit.

In the meantime, Hyundai will source batteries from other facilities while waiting for the LG plant to come online, including a Georgia site it co-owns with Korean manufacturer SK On.

The impact of the raid has rippled beyond Georgia. According to Reuters, workers at other LG plants, including those operated in partnership with GM, have been instructed to return home.