Immigration Raid Creates Risks for Billion-Dollar Investments in American Electric Vehicle Projects

Large-Scale Immigration Service Raid

The Trump administration called on global automakers to build plants in America. Hyundai Motor Group and LG Energy Solution responded to this call by investing billions of dollars in electric vehicle battery production in the United States.

However, last week, immigration services conducted a raid on a plant in Georgia where the Korean group was working to increase production. As a result, about 300 Korean citizens were detained, sparking a diplomatic conflict and halting projects across the country.

Visa Issues

During the raid, nearly 500 people were arrested, who, according to authorities, were in the country illegally. It later turned out that about 300 of them were Koreans who had arrived under the ESTA program or on B-1 visas, which allow short-term business activities such as equipment installation and training. In other words, these workers were helping to launch the plants.

While some may have violated the terms of their visas, others were there legally to help launch the very production facilities the administration had so actively promoted. According to Bloomberg, this situation not only affected the plant in Georgia but also led to the shutdown of several other plants. Korea is already sending a plane to the US to bring all detained workers home, with the company’s CEO personally participating in this trip.

“Seeing their employees treated this way, moreover with a ban on visiting the US in the future, companies feel humiliated and shamed,” said Chang Sang-sik, head of the International Trade and Commerce Research Center at the Korea International Trade Association.

Engineers’ Reaction

According to Chang, the best engineers are usually the first to be sent abroad to launch plants, but after this situation, convincing them to go to the US will be difficult, regardless of the offered salary or prestige.

“Without clear guarantees that employees will not face a similar situation, it will be even more difficult for companies to invest in the US in the future,” he added.

One worker who went through the short-term visa process called this situation “completely unrealistic” for replacing experienced Korean specialists with new American personnel. He explained that launching plants depends on specialists from Korea who train local teams, and after the raid, he would not return without perfectly processed documents.

Billion-Dollar Risks

The Georgia plant is only part of LG Energy Solution’s large-scale project. Other plants in Arizona, Michigan, and Ohio were scheduled to start operations next year to supply batteries to Hyundai, GM, and Honda. Currently, these projects are halted. LG has ordered all employees and contractors in the US who are under the ESTA program or on B-1 visas to return to Korea.

The question of whether and when they will return remains open. Without their participation in launching production, billions in investments could simply vanish. Since this contradicts the stated goals of the Trump administration, the question arises whether the raid was a good idea.

This situation could have serious consequences not only for Korean companies but also for the American economy, especially in the context of the transition to electric vehicles. The halt of projects could slow down the industry’s development and affect the US’s competitiveness on a global scale. Additionally, diplomatic tension between the countries could complicate future joint initiatives, which is particularly important in light of the growing competition with China in the technology sector.

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