BYD’s EV factory shut down over ‘slave labour’

A Chinese electric vehicle giant is under scrutiny after authorities discovered over 160 employees working in “slave-like” conditions.

Construction on a new electric vehicle (EV) factory for Chinese giant BYD has been abruptly shut down in Brazil after authorities uncovered “slave-like” conditions for over 160 workers.

BYD has been abruptly shut down in Brazil. Picture: AFP

The factory, located in Camaçari, Bahia, was set to be BYD’s largest production facility outside Asia.

The Public Labour Prosecutor’s Office (MPT) in Bahia reported finding workers, all Chinese nationals, living in “degrading” conditions.

163 workers had been building an electric car factory for Chinese giant BYD. Picture: AFP

Workers were housed in cramped quarters, with some sleeping on mattresses on the floor and sharing a single bathroom between over 30 people.

The MPT also alleged that passports were confiscated and wages withheld, amounting to forced labour.

BYD, one of the world’s leading EV manufacturers, has responded by immediately terminating its contract with Jinjiang Construction Brazil, the firm responsible for the site’s construction.

BYD, one of the world’s leading EV manufacturers. Picture: Thomas Wielecki

The company stated its commitment to complying with Brazilian law and said it had repeatedly urged Jinjiang to improve conditions. Affected workers have been relocated to hotels.

This incident casts a shadow over BYD’s ambitious expansion plans in Brazil, its largest overseas market.

The company has been operating in the country since 2015 and recently announced a significant investment in a new EV manufacturing plant.

The Brazilian authorities are taking the matter seriously, with an online hearing scheduled to address the violations and ensure worker protections.

Originally published as BYD’s EV factory shut down over ‘slave labour’