Raid at Georgia battery plant points to conflicts in Trump's growth plans
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A worker assesmbles an electric vehicle at a Hyundai plant in Georgia. Photo: Elijah Nouvelage/Bloomberg via Getty Images
The arrest of hundreds of South Korean workers building a battery plant at a Hyundai manufacturing campus in Georgia underscores the inherent tension in President Trump's policy goals.
The big picture: The Trump administration's fundamental economic policy is that companies should build factories in America. It's particularly keen on automakers — foreign or domestic — expanding their U.S. production.
- But his simultaneous crackdown on immigration means there can be a shortage of highly skilled engineers with the know-how America lacks — in this case, advanced battery production.
- You can't build a factory if all the workers get arrested.
Catch up quick: 475 people — including workers at Hyundai's joint battery plant with LG Energy Solution, its construction company Hyundai Engineering and other subcontractors — were arrested Thursday morning by the U.S. Department of Homeland Security.
- The raid appears to be part of a lengthy investigation by U.S. officials to crack down on foreigners working in the U.S. without the proper work permits.
- Hyundai and the joint venture, HL-GA Battery Company, both issued statements saying they were cooperating with law enforcement.
- The carmaker later said it has "zero tolerance" for those who don't follow the law and said it would launch its own investigation to ensure all suppliers and subcontractors comply with immigration requirements.
- Construction on the battery plant has been paused, a spokeswoman said.
Zoom in: The unexpected raid involved hundreds of federal agents executing a criminal search warrant at battery facility under construction in Ellabell, Georgia.
- Several people attempted to flee the location, running into a sewage pond located on the premises, according to a Department of Justice release.
- Agents used a boat to fish them out of the water; one of the individuals swam under the boat and tried unsuccessfully to flip it over, the DOJ said.
- An employee on the scene told South Korean media that authorities using helicopters, armored vehicles and guns quickly blocked the factory entrance and drove employees into a corner of the factory before arresting them.
- "It was like a military operation," the employee said.
- Most of the detainees were taken to an immigration detention center in Folkston, Georgia, near the Florida state line, AP reported. No charges have yet been filed.
Between the lines: Many of those arrested were South Koreans on temporary assignment in the U.S. to set up the battery plant next to a Hyundai vehicle assembly plant near Savannah.
- The sprawling manufacturing site is part of a massive $26 billion investment in the U.S. by the South Korean carmaker and its suppliers.
- The U.S. government is pressuring companies to hire local workers, but South Korean companies counter that it's impossible to recruit skilled workers in the U.S., where battery technology is still underdeveloped.
- Many of the South Koreans arrested are working in the U.S. under short-term business visas or the Electronic System for Travel Authorization (ESTA), rather than H-1B visas, which are expensive and intended for for highly skilled, non-immigrant workers in specialty occupations.
- "Most Korean companies have been sending engineers on short-term missions under the ESTA system until their U.S. factories are up and running," one employee told the South Korean publication, Hankyung.
- "Experienced Korean employees would need to directly set up the [manufacturing] process, but given the U.S. government's reluctance to issue H-1B visas, realistically, there are no other options than ESTA and B-1 visas."
For the record: "The United States is proud to be a home for major investments and looks forward to continuing to build on these historic investments and partnerships that President Trump has secured," White House spokesperson Abigail Jackson tells Axios.
- "Any foreign workers brought in for specific projects must enter the United States legally and with proper work authorizations. President Trump will continue delivering on his promise to make the United States the best place in the world to do business, while also enforcing federal immigration laws."
The other side: "The rights of our citizens must not be unfairly infringed upon," South Korea's Ministry of Foreign Affairs said.
- "We have conveyed our concerns and regrets (to the U.S. side). We have urgently dispatched the Consul General from the U.S. Embassy to the U.S. to the scene."
What they're saying: "Let's be clear: this is part of the Trump administration's larger assault against workers and immigrants," said Becky Belcore, co-director of the National Korean American Service and Education Consortium (NAKASEC), who accused the government of targeting international workers and companies.
What to watch: Whether this puts a chill on U.S. expansion plans by other foreign manufacturers.
Editor's note: This story has been updated with a Hyundai statement.
