Wooone Technology, a secondary battery assembly equipment company, has provided paid leave to employees and restricted business travel to the U.S. following immigration enforcement at the Hyundai Motor and SK On joint plant construction site.
The response follows the September 4th enforcement action where Immigration and Customs Enforcement (ICE) and Homeland Security Investigations detained approximately 300 Korean workers at the Hyundai-LG Energy Solution battery plant construction site.
The workers were found to be using ESTA travel authorization and B-1 business visas while performing work activities in violation of their visa terms.
Ken Shim, head of Wooone Technology’s U.S. operations, stated that employees are staying in hotels or at home and told them to consider it a week’s vacation.
Shim confirmed all company employees work legally and the leave was provided following the enforcement action. The company has advised visa holders to refrain from U.S. visits until legal status clarification.
Local businesses including Walmart and H Mart have instructed employees to carry visas and passports following reports of worker verification procedures.
Korean battery companies operating in the U.S. have implemented precautionary measures. SK On issued standby orders for B-1 visa holders engaged in worker training, seminars, client meetings, contracts, and equipment installation supervision.
SK On maintains B-1 visa holders are legally compliant and is reviewing redeployment without a set timeline.
Visa compliance uncertainties are causing construction delays at U.S. battery facilities. Hyundai Motor CEO José Muñoz stated the LG Energy Solution joint plant construction will be delayed at least 2-3 months due to the enforcement action.
The Hyundai-SK On joint plant investment timeline will also be affected. The companies agreed in April 2023 to invest approximately $5 billion for a 35GWh annual capacity joint plant.
The project was reduced from eight to four battery production lines due to electric vehicle market slowdown.
After resuming investment this month following deliberation, the enforcement action has prevented timely personnel deployment.
The operation schedule targeted for late 2024 has been postponed to 2025.
