Car manufacturer Hyundai Motor (HYMLF) has warned that the opening of the electric vehicle battery plant hit by ICE immigration enforcement agents earlier this month will be delayed potentially into 2026.
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Plant Delay
Hyundai chief executive Jose Munoz said that the plant in Georgia co-owned with South Korea’s lithium-ion battery manufacturer LG Energy Solution is facing a minimum startup delay of two to three months.
The plant, part of a $7.6 billion factory complex to make battery-powered models, was slated to come online later this year.
However, those plans were disrupted after the plant was at the center of the largest single-site enforcement operation in the U.S. Department of Homeland Security’s history. The raid was carried out by U.S. Immigration and Customs Enforcement, or ICE for short.
About 475 workers, mostly South Korean nationals, were arrested, according to U.S. immigration officials. They accused the detainees of working illegally at the facility.
Munoz, speaking for the first time since the raid, said he was surprised when he heard the news and immediately inquired if Hyundai workers were involved. He said the company discovered that the workers at the center of the raid were mainly employed by suppliers of LG.
Typical Staff
It is typical for an automotive battery plant to employ these workers as it is getting off the ground, Munoz said.
“For the construction phase of the plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz said.
He added that Hyundai will source batteries from other plants as it waits for the LG plant to start up, including from a Georgia plant co-owned with Korean battery-maker SK On.
Hyundai’s shares have spluttered this year, falling nearly 9%. This is despite sales in the U.S. increasing by 3.3% year-over-year in the second quarter, see above, with eco-friendly vehicles recording a significant increase of 32.5% compared to the previous year.
It also posted record high sales of hybrid models at 170,000 units, which is 15.8% of total sales.
Is HYMLF a Good Stock to Buy Now?
Meanwhile, on TipRanks, HYMLF stock currently has no ratings by Wall Street analysts. However, TipRanks’ Technical Analysis Tool points to a Strong Buy Overall Consensus.
