The aggressive immigration crackdown initiated by US President Donald Trump has significantly disrupted South Korean automaker Hyundai's ambitious electric vehicle plans in the United States. According to a Bloomberg report dated Wednesday, November 19, 2025, the construction of Hyundai's electric vehicle battery plant in Georgia has been delayed by at least two to three months following a sudden immigration raid that created severe labor shortages.
ICE Raid Creates Chaos at Hyundai Facility
In a dramatic development in September 2025, US Immigration and Customs Enforcement (ICE) agents conducted a surprise raid at the Hyundai-LG Energy Solution Ltd plant in Georgia. The federal agents detained 475 workers, most of whom were Korean nationals, as confirmed by Hyundai Motor Chief Executive Officer José Muñoz in his interview with Bloomberg.
Shocking images emerged from the raid showing detainees shackled at their wrists, waist, and ankles, creating waves of concern throughout the automotive industry and potentially straining diplomatic relations between South Korea and the United States.
Muñoz revealed that he received a phone call from the Governor of Georgia who informed him that someone had made a false report suggesting there were illegal immigrants working at the Georgia plant. "So, apparently, somebody made a phone call and made it look like there were illegal immigrants. That's absolutely not the case," Muñoz stated emphatically.
Financial Impact and Official Apology
The unexpected ICE raid has exposed significant risks to Hyundai's massive investment in the US economy, which includes the company's comprehensive $26 billion investment plan for the country. Compounding the problem, the automaker is already grappling with $1.2 billion in tariff costs during the third quarter of 2025 alone.
In a significant development, the US federal government has issued an official apology to the automaker for the sudden ICE raid that disrupted construction operations. The company has subsequently lowered its profit outlook for 2025 while simultaneously increasing its revenue forecast for the year.
Hyundai's Commitment Despite Challenges
Despite the significant setbacks, Hyundai Motor CEO José Muñoz remains committed to the company's US investment strategy. Speaking at the sidelines of the New Economy Forum in Singapore, Muñoz described the raid as a "bad surprise" but reiterated that it hasn't affected Hyundai's determination to invest in the United States.
"We cannot simply, because something happened, which is obviously an accident, and you get even apologies from the president of the United States, say this is going to change our plans," Muñoz told the news agency. "We want to maintain our investments in the country. We think in the mid to long term, things are going to get better."
The company plans to increase its investments in the United States as a strategic move to shield itself from the escalating tariffs on imports from South Korea. Muñoz emphasized the critical need to restructure supply chains by investing in local markets to strengthen the company's operations across America.
This incident highlights the complex challenges facing international companies operating in the United States amid changing immigration policies and trade tensions, while also demonstrating Hyundai's resilience in maintaining its long-term strategic vision despite temporary obstacles.
