Brazil has recently shut down a factory site owned by Chinese electric vehicle (EV) manufacturer BYD, following a local investigation that revealed severe labor abuses. The accusations included the existence of forced labor conditions, leading to the rescue of over 160 workers who were allegedly subjected to exploitative and dangerous working environments.
Local prosecutors, in collaboration with Brazil’s Ministry of Labor, launched an investigation into the factory after reports surfaced about widespread mistreatment of workers. The authorities found that workers were subjected to excessive work hours, lack of proper safety measures, and poor living conditions. Many of the workers were living in cramped, unsanitary quarters with little access to medical care or basic necessities. The factory’s poor labor conditions were described as reminiscent of “slave-like” practices, which have been illegal in Brazil for decades.
The shutdown has placed BYD under international scrutiny, particularly as the company had been expanding its operations in Brazil to capitalize on the growing demand for electric vehicles. In response, BYD issued a statement expressing regret over the findings and pledged to cooperate fully with authorities. The company also vowed to improve its working conditions at all of its global sites to prevent further incidents.
The case has sparked a larger conversation about labor rights within the global supply chain, particularly in industries such as electric vehicle production, where the demand for raw materials and manufacturing capacity is rapidly increasing. It has led to calls for stricter oversight and better regulation of foreign companies operating in Brazil.
