In the joint battery plant of Hyundai Motor and LG Energy Solution (HL-GA) in Georgia, U.S., some employees of partner companies who were arrested and detained were found to have also been involved in building other corporations' plants in the United States. The partner companies targeted in the latest sweep handle design, equipment, and other work needed to build automobile and battery plants, so disruptions are expected not only for Hyundai Motor and LG Energy Solution but also for other corporations' investment and production plans in the United States.
According to the industry on the 12th, 317 Korean workers were arrested and detained by U.S. immigration authorities at the HL-GA construction site, including 47 from LG Energy Solution and the remaining 250 or so from partner firms. The companies confirmed so far include LG CNS, LG Electronics Production Research Institute (PRI), TOP ENGINEERING, DSK, and Rimax Development.
LG CNS was responsible for building the IT systems in the plant, and LG Electronics Production Research Institute, which handles production automation and equipment management within LG Electronics, was said to have handled tasks such as technical guidance and process tuning. TOP ENGINEERING and DSK are responsible for assembly and manufacturing equipment for batteries and materials. Rimax Development is an exterior construction company for roofs and walls, but it has mainly built complete vehicle plants.
Most of these partner companies have been deployed to or are cooperating with other automobile and battery plants beyond HL-GA. LG CNS was deployed to Ultium Cells, the joint venture between LG Energy Solution and General Motors (GM); L-H Battery Company, the joint venture between LG Energy Solution and Honda; and LG Energy Solution's Michigan plant.
TOP ENGINEERING has been deployed to Ultium Cells; NextStar Energy, the joint venture between LG Energy Solution and Stellantis; as well as Samsung SDI and SK On's plants in Hungary and Malaysia. Rimax Development has carried out construction of overseas plants multiple times for Hyundai Motor Group affiliates such as Kia, Hyundai Mobis, and Hyundai GLOVIS.
Although it has not been specifically confirmed whether employees have been detained, the situation is similar for key HL-GA partners identified as Geumyoung ENG (battery cleanrooms and dry rooms), NK Tech (high-pressure gas and safety devices), SFA Engineering Corporation (battery inspection equipment), and People and Technology (security equipment).
Many have also been deployed to other overseas plant construction projects by domestic corporations, including BlueOval SK, the joint venture between SK On and Ford; L-H Battery Company; Ultium Cells; NextStar Energy; LG Electronics' U.S. subsidiary; and SK Battery America.
An industry official said, "Personnel from partner companies dispatched to build overseas automobile or battery plants are specialists with expertise in specific fields, so they are not easy to replace. Because the pool of partner companies is limited, this incident could affect projects not only in North America but also in other regions."
Even if the detentions come to an end, visa restrictions in the United States and the possibility of tighter enforcement by local authorities remain, so dispatching partner company personnel is expected to be highly uncertain for the time being. Considering the time and expense required for new visa issuance or reissuance and staffing, delays in construction already underway and in future investment plans are seen as unavoidable.
Construction of the HL-GA plant, which was originally scheduled to be completed at the end of this year with mass production starting next year, has been fully halted. Construction at other standalone and joint plants that LG Energy Solution is building in the United States is also not proceeding normally. Plants being built by SK On and Samsung SDI are also expected to face setbacks, such as delays to operation schedules.