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HMGMA located in Ellabell, Savannah, Georgia, USA. (Photo = Hyundai Motor Company) |
[Alpha Biz= Kim Jisun] Over 300 Korean workers detained at the Hyundai Motor–LG Energy Solution joint battery plant in Georgia, U.S., were released on September 11 (local time). However, the incident has left the plant’s construction timeline in jeopardy.
The facility was initially slated for completion in the first half of 2026, with mass production beginning in the second half. Following the mass detentions, construction work has effectively come to a standstill, raising concerns about delays in U.S. localization efforts.
Under the Advanced Manufacturing Production Credit (AMPC) program, battery output in the U.S. qualifies for federal subsidies through 2032. Any production delay would mean reduced subsidies, directly impacting LG Energy Solution’s revenue and Hyundai Motor’s EV production strategy.
The greatest challenge lies in workforce continuity. Although South Korea’s foreign minister said assurances were obtained from the U.S. government that the workers can return without issue, many face physical and psychological strain after being held for a week. Industry officials warn it will be difficult to ask them to resume work or to secure new volunteers for U.S. assignments given the shock of the incident.
Most of those detained were skilled specialists from LG Energy Solution and Hyundai Engineering partner firms, handling plant construction and equipment installation. As these roles require niche expertise and suppliers are already struggling with chronic labor shortages, replacing them with new personnel will be a significant challenge.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
