Chaos At Hyundai Plant: 450 Workers Arrested In Shock US Immigration Raid Just Weeks After $26b Pledge

A dramatic immigration enforcement operation resulted in the arrest of 475 workers at the Hyundai–LG EV battery plant under construction near Savannah, Georgia. It stands as the most significant single-site enforcement action in the history of Homeland Security Investigations.

The incident comes just weeks after Hyundai pledged a $26 billion investment into its US operations, raising questions about oversight and compliance in one of the country's largest industrial projects.

Plant Construction Halted Amid Enforcement Action

Federal agents, including ICE, HSI, FBI and other agencies, executed a court-approved raid amid allegations of illegal employment practices. Construction at the facility—part of a joint venture and a critical component of Hyundai's $26 billion US expansion—was immediately paused.

Mass Arrests at Georgia Facility

On 5 September 2025, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in coordination with Immigration and Customs Enforcement (ICE), conducted a large-scale operation at the Hyundai-LG Energy Solution battery plant in Ellabell, near Savannah, Georgia.

The facility, part of a $7.6 billion joint venture, is expected to support Hyundai's electric vehicle production and employ over 8,000 workers by 2031.

According to Democratic Underground, the raid led to the arrest of roughly 450 individuals identified as undocumented immigrants. The operation reportedly followed months of surveillance and whistleblower reports alleging widespread use of fraudulent documentation and unauthorised employment.

Eyewitnesses described chaotic scenes as workers attempted to flee the site, with some reportedly scaling fences to avoid apprehension. The ATF confirmed that the raid was part of a broader investigation into potential violations of federal labour and immigration laws.

Whistleblower Allegations Raise Serious Concerns

The scale of the arrests has drawn attention to allegations made by a whistleblower, who claimed that up to 90% of the workforce at the plant was undocumented migrants, many of whom had entered the United States from Venezuela.

The whistleblower further alleged that workers were provided with falsified Social Security documentation and were being coached to apply for long-term disability benefits under fraudulent pretences.

These claims were detailed in a report by K47 Digital News, which has since prompted calls for a federal audit of the plant's hiring practices and contractor oversight.

Hyundai Silent Amid Mounting Pressure

Hyundai Motor Company has yet to issue a formal statement regarding the raid or the allegations. The company's silence has drawn criticism from labour rights advocates and political figures, who argue that multinational corporations must be held accountable for the integrity of their supply chains and employment standards.

The Ellabell facility is a cornerstone of Hyundai's broader US expansion strategy, which includes a $26 billion pledge to invest in electric vehicle infrastructure, manufacturing, and research.

The investment was announced in July 2025 as part of a bilateral agreement between South Korea and the United States aimed at strengthening economic ties and clean energy collaboration.

Diplomatic Fallout and Trade Implications

The arrests have sparked diplomatic tensions between Washington and Seoul, with South Korea reportedly lodging a formal protest over the treatment of its nationals and the potential impact on bilateral relations. The timing of the raid, which was so soon after the investment pledge, has raised concerns about the stability of foreign investment in the US and the consistency of immigration enforcement.

The Biden administration has championed foreign investment as a key pillar of its industrial policy, particularly in the clean energy and automotive sectors. However, critics argue that aggressive enforcement actions, such as the Ellabell raid, risk undermining investor confidence and damaging strategic partnerships.

Labour Practices Under Renewed Scrutiny

The incident has reignited scrutiny of labour practices within Hyundai's US operations. A Reuters investigation previously uncovered child labour violations at Hyundai and Kia supplier facilities in Alabama, prompting federal probes and calls for reform.

Advocates for immigrant workers have condemned the mass arrests at Hyundai's Georgia EV battery plant, describing them as emblematic of a broken enforcement system that disproportionately targets vulnerable labourers while shielding corporate actors. They are urging more humane immigration policies and stronger accountability mechanisms for multinational employers.

Legal experts warn that Hyundai could face fines, federal audits, and reputational fallout if whistleblower allegations of unlawful employment practices are substantiated. The scale of the raid, reportedly the most significant single-site enforcement action in ICE history, has also drawn diplomatic concern from South Korea, whose nationals made up a significant portion of the 450 detained.

In response to the raid, Hyundai spokesperson Michael Stewart told Reuters:

'We are cooperating with law enforcement and are committed to abiding by all labour and immigration regulations.'

The company emphasised that operations at the plant were not interrupted and reiterated its commitment to compliance amid growing scrutiny from both US and South Korean officials.

What Lies Ahead

As investigations continue, pressure is mounting on Hyundai to clarify its hiring protocols and cooperate with federal authorities. The company's handling of the situation may determine the future of its US expansion and its standing in global markets.

Meanwhile, the diplomatic fallout and public backlash underscore the challenges of striking a balance between immigration enforcement and economic development. For Hyundai, the Ellabell raid represents not only a legal and reputational crisis but also a pivotal moment in its American journey.