LG Energy Solution battery manufacturing facility under construction in the United States

출처 : SONOW

LG Energy Solution has officially announced it will not halt local battery plant construction despite the mass arrest of Korean workers at its Georgia facility. Lee Hyuk-jae, LG Energy Solution's North American regional head, stated at an automotive industry event in Detroit on September 16 that we are working very hard to ensure no impact on customers at all sites, according to Wall Street Journal reports.

Four US Battery Plants Continue Construction Amid Workforce Challenges

LG Energy Solution is currently building four battery plants across the United States in partnerships with General Motors, Honda Motor, and Hyundai Motor. The Georgia facility where the arrest incident occurred is a joint venture with Hyundai Motor Group.

Lee emphasized that we must find ways to operate without problems regardless of any situation, and that's what we're doing now. However, he did not provide detailed explanations about how factory construction is specifically proceeding after the arrested Korean workers returned home.

The company revealed it is conducting investigations at other joint venture plants to ensure visa and employment situations are appropriate to prevent recurrence of detention incidents. Some facilities have advised business trip employees to temporarily return home or stay in accommodation facilities.

Hyundai Motor Shows More Cautious Stance on Construction Timeline

Unlike LG Energy Solution's optimistic outlook, Hyundai Motor is displaying a more cautious position. Hyundai CEO Jose Munoz stated on September 11 that at least 2-3 months of schedule delays are expected and currently all detained individuals want to return to Korea.

CEO Munoz expressed difficulties, noting that battery plant construction stages require specialized personnel, but there are many technologies and equipment unavailable in the United States. This highlights the dependency on Korean technical expertise for advanced battery manufacturing processes.

Visa System Reform Expectations Following Immigration Incident

Lee expressed hopes that US visa systems would improve to allow skilled Korean workers easier entry into the United States following this incident. He stated that many people have long been aware of this problem and this incident has brought more attention to the issue, which could lead to positive changes.

The executive's comments reflect broader industry concerns about immigration barriers affecting international manufacturing partnerships and technology transfer in critical industries like battery production.

Mass Arrest Details and Worker Repatriation

US Immigration and Customs Enforcement (ICE) arrested 475 workers at the Hyundai Motor Group-LG Energy Solution joint battery plant construction site in Georgia on September 4, citing visa issues and illegal residence. The detained group included 317 Korean nationals.

Of the Korean workers, 316 were repatriated after seven days of detention, boarding flights home on September 11 and arriving in Korea the following day. Only one Korean worker remained in US custody, though specific reasons were not disclosed.

Strategic Implications for US Battery Manufacturing Expansion

The incident highlights critical challenges facing foreign companies establishing manufacturing operations in the United States, particularly in specialized sectors requiring international expertise. LG Energy Solution's determination to continue construction despite workforce disruptions demonstrates the strategic importance of the US market for Korean battery manufacturers.

The divergent responses from LG Energy Solution and Hyundai Motor reflect different approaches to managing immigration-related business risks while maintaining commitments to US manufacturing expansion. The incident may accelerate discussions about skilled worker visa policies affecting critical supply chain industries.