More than 300 Koreans detained in the US have returned to Japan after five days of detention following an Immigration Customs Enforcement (ICE) attack at a Hyundai facility in Georgia.
Hyundai produces electric vehicles (EVs) and manufactures EV batteries with partner LG Energy Solutions at this manufacturing plant in Georgia.
President Donald Trump reportedly ordered a pause to see if his employees were willing to stay in the United States and continue to work and train Americans.
The joint “Metaplant” project between Hyundai and LG was scheduled to open a battery factory in 2026. However, work on the battery plant was stopped after the attack.
International Energy Agency (IEA) estimates that Korean companies already account for 40% of US battery cell production capacity, and is expected to rise to more than 50% by 2030.
The raid raises questions about the structure of the global EV supply chain. The European EV market is largely isolated from US turmoil, as automakers usually source key components close to the final market.
According to the report, most EVs for sale in Europe are building both the vehicle itself and increasingly batteries locally. According to a 2024 market analysis report published by joint EU research group IPCEI-Batteries, “80% of European demand was already covered by cells produced in Europe by 2023.”
However, the continent is heavily dependent on the Korean-operated factories of EV batteries. According to the International Energy Agency, approximately 75% of Europe’s existing battery cell manufacturing capacity is owned by Korean companies, with 50% of that being owned by LG.
Energy subsidiaries such as LG Energy Solutions of South Korea’s Choivol Conglomerate, Samsung SDI and SK began building Gigafactories in Central and Eastern Europe to supply the European growth EV market as early as 2016.
Mercedes-Benz is one of the biggest buyers of EV batteries in Korea. Media reports say in September, the German automaker signed an LG Energy Solutions and long-term battery supply agreement with its ambition to produce 32 GWH of batteries and another 75 GWH by 2035.
Where in Europe are EV battery plants?
Most gigaplants in Europe are located in Poland, Hungary and Germany.
In 2022, Poland became the world’s second largest producer of lithium-ion batteries, producing 60% of all lithium-ion batteries made in Europe.
“After China, (Poland) has become the world’s second largest producer of lithium-ion batteries. These developments have put Poland at the forefront of the global clean technology supply chain and enhanced Europe’s strategic position in the net-zero transition,” the 2024 report states.
This leadership is driven by South Korea’s investment. The Polish city of Lokroh is located at the LG Energy Solutions plant, which has Europe’s largest battery factory in a 100 hectares region, employing 9,500 workers, according to LG and Polish local governments.
Gigaplant supplies cells to the Volkswagen Group, Audi, Porsche, Jaguar Land Rover and Mercedes-Benz.
Hungary hosts Samsung SDI factory in Göd city, which supplies BMW and Volkswagen, as well as SK On’s Iváncsa and Komárom sites.
Chinese battery manufacturer CATL began cell production in 2022 in Thuringia, Germany, for BMW and Volkswagen. Currently, it produces approximately 8 GWh per year, with plans to increase to 14 GWH per year.
However, the European Commission is actively promoting a self-sufficient battery supply chain. In 2017, we launched the European Battery Alliance (EBA) and created our own manufacturing.
The committee is currently drafting legislation to introduce minimum EU content requirements for cells and components of electric vehicles sold in Europe.