Brazil Halts BYD Factory Construction Over Allegations of Worker Exploitation

Brazilian authorities have suspended the construction of a BYD electric vehicle factory in Bahia state following reports that more than 160 Chinese workers were subjected to “slavery-like” conditions.

The allegations include excessive working hours, degrading living environments, and restrictions on workers’ freedom.

The workers, brought to Brazil by the contractor Jinjiang Construction Brazil, reportedly endured long workweeks—sometimes seven consecutive days—and had their passports withheld, leaving them unable to leave without authorization.

Inspectors from the Public Labor Prosecutor’s Office revealed that the workers were housed in substandard accommodations, sleeping on beds without mattresses, and sharing only eight portable toilets among over 600 people. Unsanitary conditions extended to food storage, with meals left exposed and near bathrooms. Workers were often forced to eat in their sleeping quarters.

The labor office described the situation as one of “precariousness and degradation,” noting violations of human dignity, unsafe working conditions, and indicators of forced labor.

BYD, a leading Chinese electric vehicle manufacturer, responded by severing its relationship with Jinjiang Construction Brazil. The company stated that all affected workers would be relocated to regional hotels and pledged to reassess the conditions for all contractors involved in the project.

Brazilian labor authorities began investigating the site in November, ultimately shutting down the factory construction and related accommodation sites until conditions meet regulatory standards.

The factory, which was set to be BYD’s first electric vehicle manufacturing plant outside Asia, was scheduled to begin operations by March 2025. BYD expressed its commitment to addressing the issues while continuing its plans in Brazil, where it has been operating for a decade.

Bloomberg and the Guardian contributed to this report.