How Hyundai’s Massive ICE Raid in Georgia May Shake U.S.–Korea EV Supply Chains

Federal agents conducted a sweeping raid on a major Hyundai supplier facility in Georgia early Friday, arresting hundreds of workers and creating immediate uncertainty for one of the most significant foreign investments in the U.S. electric vehicle sector.

A raid, confirmed by a spokesperson for U.S. Immigration and Customs Enforcement (ICE), occurred at a sprawling parts facility connected to Hyundai’s new electric vehicle “Metaplant” near Savannah.

The agency stated that this operation was part of an ongoing investigation into the alleged use of unauthorized labor and identity fraud.

Hyundai Motor Group, in a statement released shortly after the raid, stated that it was “assessing the situation” and committed to upholding all federal and state employment laws. The company emphasized its efforts to comprehend the investigation’s details and its full cooperation with the authorities.

The operation could cause substantial disruptions to a supply chain that is crucial to both the United States and South Korea. The Georgia plant serves as the focal point of Hyundai’s multi-billion dollar endeavor to enter the American electric vehicle market.

This investment has been significantly encouraged by U.S. incentives aimed at establishing a domestic manufacturing base.

Officials in Seoul are reportedly monitoring the situation closely. A source within South Korea’s Ministry of Trade, who was not authorized to speak publicly, expressed concern that the raid could complicate operations at a crucial time for the automaker.

The plant is key to Hyundai’s ability to have its vehicles qualify for U.S. federal EV tax credits under the Inflation Reduction Act, which requires local assembly and sourcing.

According to data from the Georgia Department of Economic Development, Hyundai and its suppliers have committed to investing over $7.5 billion in the state.

This investment promises to create more than 8,500 direct jobs. However, this development raises significant questions about the availability of a sufficient labor pool to support this rapid expansion.

ICE, while not disclosing the precise number of individuals detained, characterized the operation as “significant.” The agency’s statement revealed that its investigation commenced several months ago, prompted by tips and evidence of a sophisticated scheme aimed at providing fraudulent work documents to non-citizens.

The development puts the administration in a difficult position, balancing its strict immigration enforcement policies with its economic goal of onshoring critical supply chains away from China. For Hyundai, the challenge will be to secure its production timeline while navigating a serious legal and public relations crisis.

The fallout from Friday’s events will likely be felt across the entire U.S.-Korea trade relationship for months to come. More information can be found on the U.S. Immigration and Customs Enforcement news page.

Also read, Inside the Secret U.S.–Taiwan Defense Talks in Alaska: What They’re Not Telling Us About China’s Next Move.