Trump’s ICE raid delays Hyundai’s US-based EV plant expansion; automaker predicts 2-3 month hit

US President Donald Trump’s crackdown on illegal immigration in America has delayed construction of South Korean automaker Hyundai’s electric vehicle (EV) battery factory in Georgia, US, the news agency reported. Bloomberg On Wednesday, November 19, 2025.

The company said the immigration raid at its facility delayed construction of the expansion by at least two to three months due to a labor shortage and a crisis of escalating U.S. tariffs on all Korean imports to America.

The US federal government has issued a formal apology to the automaker for the sudden Immigration and Customs Enforcement (ICE) raid that delayed construction operations at its Georgia plant, according to the agency’s report.

What happened during the ICE raid?

In September 2025, US Immigration and Customs Enforcement (ICE) raided Hyundai-LG Energy Solution Ltd’s factory in Georgia, where federal agents detained 475 workers, mostly Korean, Hyundai Motor Chief Executive Officer (CEO) José Muñoz told the news agency.

Amid ongoing diplomatic relations between South Korea and the United States, images of ICE detainees shackled at their wrists, waists and ankles have emerged, sending shockwaves throughout the industry.

Munoz reportedly received a call from the Governor of Georgia, who told him that someone had made a phone call and that ‘it appeared there were illegal immigrants’ working at the Georgia plant.

Muñoz told the news agency: “Apparently someone made a phone call and made it look like there were illegal immigrants. That’s definitely not the case.”

The ICE raid on the facility exposed billions of dollars in risks Hyundai has invested in the U.S. economy, including the company’s plan to invest $26 billion in the country.

Bad surprise?

Muñoz called the raid at the New Economy Forum in Singapore a “bad surprise” and reiterated that it did not affect Hyundai’s determination to invest in the United States. The Hyundai Motor CEO also stated that the company plans to double down on its expansion plans.

“We simply can’t because something happened, which is clearly an accident, and you’re even getting apologies from the president of the United States saying this would change our plans,” he told the news agency. “We want to continue our investments in the country. We think things will get better in the medium and long term.”

This raid comes at a time when the automaker is already facing $1.2 billion in tariff costs in the third quarter of 2025. According to the agency report, the company lowered its profit outlook for 2025 and increased its revenue forecast for this year.

Hyundai CEO Muñoz told the news agency that the company plans to increase its investments in the United States to protect itself from severe tariffs on imports from South Korea. Muñoz also emphasized the need to restructure supply chains by investing in local markets to increase the company’s operations in the Americas.