Earlier this month, U.S. Immigration and Customs Enforcement carried out the largest single-site enforcement operation in its history. The agency detained roughly 475 workers at the LG Energy Solution battery plant near Hyundai’s Metaplant America electric vehicle factory in Georgia. Of those, about 300 were Korean nationals.
Bloomberg on Wednesday published a chilling report titled “Unmade in America.” It described how the highly trained and skilled workers were held in “hell”-like conditions. A pregnant woman said the detention gave her nightmares. Others were forced to sleep near urinals and eat foul-smelling food. The treatment has sparked outrage in South Korea, where many feel their citizens were humiliated.
Now the backlash is spilling into Korea’s EV market, where, according to local media reports, some buyers are now steering clear of American cars.
Welcome to Critical Materials, your daily round-up of news shaping the world of electric cars and transportation technology. Also on our radar today: Waymo is partnering with Via to turn driverless cars into public transportation. Plus, one of the most interesting EV players coming on the scene soon—Scout motors—is dumping a bunch more cash into its American manufacturing operations.
30%: Koreans Shun American Cars After Georgia Immigration Raid
The Hyundai Motor Group’s $12.6 billion investment is Georgia’s largest economic development project ever, expected to generate over 40,000 direct and indirect well-paying jobs for American workers.
This includes Hyundai’s own Metaplant America manufacturing site and LG Energy Solution’s plant nearby, which will supply batteries for the EVs Hyundai makes.
On September 4, some 300 highly-skilled Korean engineers and technicians arrived at the site to help build the LG Energy Solution battery plant. But they soon ended up in an ICE detention center.
Bloomberg reported that the workers were shackled at the waist, handcuffed, and crammed into rooms with doorless toilets. Some engineers told the BBC that officers pointed guns at them.
A pregnant woman told a local TV news station after going back to Korea that she was put in a room with 30 others. She saw another woman get a seizure, but did not receive any medical attention.
None of this seems to have gone down well in their home country, with locals calling for boycotts of American goods and canceling Tesla orders in favor of Hyundai EVs.
Here’s what Korea’s The Chosun Daily reported:
A South Korean consumer who had reserved a Tesla vehicle canceled the order in response to the mass detention of Koreans at a Hyundai Motor Group-LG Energy Solution joint battery factory in Georgia, the United States.
Netizens reacted with comments such as, “You made a rare decision,” “I’m also angry and considering a boycott of U.S. products,” and “I’ll choose a domestic car for the same reason.”
This incident left 59.2% of South Koreans disappointed with the U.S. government, according to a survey of 508 adults aged 18 or older conducted by Realmeter on the 8th. Only 30.7% understood the U.S. government’s actions as unavoidable, while 10.2% responded, “I’m not sure.”
Korean firms have some of the world’s best EV, battery and consumer electronics technology thanks to the likes of Samsung, Hyundai, LG Energy Solution, SK On and many more—all of whom have sprawling U.S. operations and manufacturing facilities. And Hyundai and Kia cars are extremely popular among American consumers, with both brands clocking record sales over the past few quarters across their gas and electric line-ups.
The raid, however, threatens to upend relations between the two countries. The Trump administration seems to understand this. In the aftermath, the president attempted some damage control, saying that foreign workers were welcome in the U.S.
“If we don't do this, all of that massive investment will never come in the first place... I don’t want to frighten off or disincentivize investment into America by outside countries or companies,” he said on his social media platform, Truth Social.
60%: Robotaxis Are Public Transit Now
Waymo is teaming up with Via, a company that augments public transit systems with on-demand cars and shuttles, to bring driverless taxis to Chandler, Arizona, this fall.
The robotaxis will be folded into Chandler Flex, the city’s on-demand public transport service. Via basically supplies the software, app and the mapping that powers this on-demand public transit network.
Using the Chandler Flex app, riders can order a vehicle that pulls up to a designated “virtual bus stop.” Most rides today are in Chrysler Pacifica minivans, and each trip costs just $2. But for those less tech-savvy, there’s also a phone line. You can simply call in and request a ride.
Later this year, residents will be able to summon Waymo’s electric Jaguar I-Pace robotaxis through the service.
That's just the start, Waymo and Via say. If the pilot succeeds, it could encourage other local governments in the U.S. to also bring autonomous vehicles directly into their public transit networks.
90%: Scout Motors Revs Up
Building a car factory is like building an entirely new city. These sprawling plants bring in suppliers and new workers. Grocery stores and restaurants pop up nearby with new roads and upgraded highways for connectivity.
Volkswagen-backed Scout Motors is aiming for something similar with its newly announced $300 million investment in South Carolina, where it’s constructing a $2 billion plant to make the Scout Terra truck and the Traveler SUV.
The new investment will go toward building a “supplier park” for specialized manufacturing and logistics space. The site will also hold a battery assembly building and a vehicle accessories building, generating some 1,000 new jobs.
Production of the Scout EVs and extended range EVs (EREVs) is expected to start by the end of 2027, so expect deliveries by early 2028. That is, if everything goes as planned.
100%: Would You Like Robotaxis As Public Transit?
Autonomous vehicle companies have mostly pitched driverless cars as ride-hailing services. Basically, robot Ubers and Lyfts. But the new Waymo-Via partnership positions robotaxis as part of a public transit system. Instead of being a premium service, these rides could be something anyone can hop on at a fraction of the cost of a traditional Uber or Lyft.
Pricing in Chandler hasn’t been announced yet, but for this to work, Waymo’s fares will need to stay close to what people already pay for the city’s on-demand service. So would you actually take a Waymo if it were priced like a bus ride? And would you prefer this over buses, which can sometimes be annoyingly late and unreliable?
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