Inside the Hyundai raid: A monthslong probe that shook Georgia’s EV ambitions

Hyundai stated that none of its direct employees were arrested and reiterated its “zero tolerance” policy toward legal violations.

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A massive immigration enforcement action at Hyundai and LG’s under-construction battery facility in Ellabell, Georgia, has triggered both economic and diplomatic aftershocks. More than 475 people, including over 300 South Korean nationals, were detained in what US authorities described as the largest single-site immigration raid in two decades. The operation has intensified debate around visa loopholes, US labour shortages, and the challenges facing Korean firms expanding in America.

The Operation Unfolds

The raid, codenamed “Operation Low Voltage,” was the result of a months-long investigation involving multiple agencies, including ICE, Homeland Security Investigations, the FBI, the Department of Labor, and Georgia state authorities. More than 400 officers were mobilized to the $4.3 billion EV battery project, which has been touted as Georgia’s largest-ever economic development initiative.

Officials clarified that the sweep was not a routine roundup. Instead, the action was backed by a search warrant targeting alleged unlawful hiring practices and other serious federal crimes. Footage showed federal agents halting construction and escorting detained workers—some in handcuffs—onto buses. In dramatic scenes, several workers even attempted to flee, with some pulled from a sewage pond by agents.

Visa Rules Under Scrutiny

At the heart of the controversy are US visa restrictions. Reports indicate that many detained South Koreans had entered on ESTA permits or B-1 business visas, neither of which allow construction or manual labour. While Korean companies have leaned on these permits due to the difficulty of securing limited H-1B work visas, US authorities argue such practices violate immigration law.

Immigration officials said those arrested were “working unlawfully” in the US Korean executives, however, maintain that current visa quotas are impractical for companies facing urgent labour shortages. Requests by Korean businesses for a dedicated visa category have so far gone unanswered.

Economic Stakes and Fallout

The enforcement action has halted all activity at the HL-GA facility, a $7.59 billion joint venture between Hyundai Motor and LG Energy Solution. Originally slated to open in 2026, the project’s timeline is now in jeopardy. The raid also rattled financial markets: Hyundai stock dipped 0.7 per cent, while LG Energy Solution saw a 2.3 per cent decline following the news.

The incident comes as South Korean firms have pledged over $350 billion in US investments to build out supply chains for electric vehicles and clean energy. Analysts warn that repeated crackdowns could undermine confidence in these projects.

Diplomatic and Corporate Responses

The Korean government expressed concern, with top executives from LG flying to Georgia to push for the release of detained employees. LG confirmed that 47 of its own staff were among those held, while most others were linked to subcontractors. Hyundai stated that none of its direct employees were arrested and reiterated its “zero tolerance” policy toward legal violations.

President Donald Trump, meanwhile, defended the enforcement action, saying ICE had simply done its job.

With construction halted and diplomatic tensions simmering, the episode has cast a shadow over one of the US’s most high-profile EV ventures—and raised questions about how foreign investors can navigate America’s restrictive visa system while meeting soaring demand for green jobs.

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