Hyundai Motor: "Battery Joint Venture Plant Construction Delayed by 2-3 Months"... U.S. Investment Factories Face Setbacks

President Munoz Addresses Issue for the First Time
LG Energy Solution Grants One-Month Paid Leave to Affected Employees
Samsung's Taylor Foundry Plant Also Faces Construction Delays
Chung Euisun: "Korea and the U.S. Should Build a Better Sy

Jose Munoz, President of Hyundai Motor Company, has officially stated that the construction schedule for the Hyundai Motor Company and LG Energy Solution battery joint venture plant has been disrupted due to the impact of U.S. authorities' visa crackdown. After a large-scale visa enforcement action at business sites by U.S. immigration authorities, concerns were raised about reduced investment and potential delays in plant construction by Korean companies, and this is the first time it has been acknowledged. LG Energy Solution, whose more than 300 employees, including those from partner companies, were detained, has also decided to grant these employees a special one-month leave of absence, making it inevitable that construction will be delayed by at least a month.

On September 11 (local time), President Munoz attended an automotive event in Detroit, where he said, "Due to this incident (the U.S. authorities' visa crackdown), we expect at least a two to three month delay in construction." He added, "All personnel want to return to Korea," and continued, "We will also have to consider how to fill those positions." He explained the background of the disruption by stating, "The construction phase of the plant requires specialized personnel," and "There are many skills and equipment that cannot be sourced in the United States."

Hyundai Motor Company and LG Energy Solution have been building a battery joint venture plant in Georgia, United States, with the goal of completion in the first half of 2026. However, as disruptions have occurred in securing personnel such as equipment process experts, the completion date is now expected to be pushed back to the second half of the year or later.

Hyundai Motor Group Meta Plant America (HMGMA) exterior. Provided by Hyundai Motor Group

It has been reported that LG Energy Solution will grant four weeks of leave of absence to its employees and those of its partner companies until October 12. This type of leave is provided by a company or country for official reasons to allow employees to rest. As a result, the resumption of plant construction will inevitably be further delayed. A company representative said, "We were almost at the final stage of completion, but due to this sudden variable, it is expected to take quite some time," and continued, "At the moment, we do not have the capacity to assess the extent of plant damage or whether we can resume operations. Our focus is on ensuring the safe return of our employees to Korea."

The delay in establishing the Hyundai Motor Company and LG Energy Solution joint venture plant is also expected to affect the investments of other companies operating locally. Semiconductor, automobile, and battery companies that have already confirmed investments will have no choice but to delay the start of plant construction or the deployment of personnel, while companies considering new investments must now reassess stability and direction.

This trend is also placing direct pressure on Samsung Electronics' foundry (semiconductor contract manufacturing) plant in Taylor, Texas. This plant is a key investment site that must establish an advanced 2nm (1nm = one billionth of a meter) semiconductor production line, requiring the dispatch of a large number of skilled personnel from Korea. However, inevitable delays are occurring due to visa issuance holdups. In particular, not only Samsung but also its parts and equipment partners face significant challenges, as it is difficult to obtain L1 visas unless they have established local subsidiaries.

An industry official stated, "Even if we prepare to dispatch personnel who have already received L1 visas, it takes several months to obtain new ones," and added, "The fact that partner company personnel are also restricted is a problem." He continued, "In order to cooperate with Tesla, it is necessary to complete the Taylor plant as soon as possible, but uncertainty has increased even at the equipment ordering preparation stage," and said, "We can only hope for negotiations between the governments." He also explained, "We are considering to what extent we can increase the proportion of local hires, but at least 20% of the workforce must be skilled personnel from Korea."

Jang Sangshik, Head of the International Trade and Commerce Research Institute at the Korea International Trade Association, said, "In the short term, negative impacts are inevitable," and analyzed, "Companies that have not yet begun construction will have no choice but to delay their schedules, and those already underway will need to adjust completion dates or recalculate costs." He pointed out, "During the plant construction and equipment installation phase, there is a high dependence on Korean engineers, so it is difficult to replace them with only U.S. personnel."

Companies unanimously agree that the U.S. market remains a core strategic market for Korean companies and the Korean economy. On this day, Chung Euisun, Chairman of Hyundai Motor Group, attended the Automotive News event in the United States and said, "I felt relieved to hear that everyone is returning home safely," and added, "The United States is the largest and most important market for Hyundai Motor Company," expressing, "As an automobile manufacturer, I want to contribute even more to the U.S. market." This is seen as emphasizing that the fundamental commitment to investment in the United States remains unchanged, even after the large-scale crackdown by U.S. authorities. He continued, "Visa issues are very complicated. I hope both countries can work together to create a better system."

President Munoz also stated, "Although this incident is very regrettable, the strategic importance of the U.S. market to Hyundai Motor Company remains unchanged," and emphasized, "We have been investing for the past several years and will continue to do so in the future." Hyundai Motor Group is keeping open the possibility of revising its production strategy in the United States to minimize the impact of the delay in establishing the battery joint venture plant. A leading option being discussed is to reduce the proportion of electric vehicle production and increase the production of hybrid vehicles at Hyundai Motor Group Meta Plant America (HMGMA).