BYD factory slavery allegations: Over 160 workers rescued from degrading conditions at Chinese EV giant’s first Non-Asian factory

Brazilian authorities have halted the construction of a factory for Chinese EV manufacturer BYD in Bahia state following BYD factory slavery allegations. Over 160 workers employed by Jinjiang Construction Brazil, a subcontractor, were found living in appalling conditions, including overcrowded housing, confiscated passports, and unpaid wages.

Prosecutors from the Public Labour Prosecutor’s Office (MPT) revealed that workers slept on beds without mattresses, shared a single bathroom among 31 people, and faced harsh treatment akin to forced labour. The workers were allegedly subjected to excessive fees for terminating their contracts, further trapping them in debt bondage.

BYD, which had planned to open the factory in March 2025 as its first EV plant outside Asia, stated it had severed ties with the contractor and relocated the affected workers to hotels. The company said it had repeatedly urged the subcontractor to improve conditions, conducting reviews prior to the intervention.

The halted factory project was part of BYD’s $484.2 million investment to strengthen its presence in Brazil, its largest overseas market. Since its entry into the Brazilian market in 2015, BYD has expanded operations, including producing chassis for electric buses in São Paulo. The now-suspended Bahia factory was intended to bolster BYD’s global competitiveness against rivals like Tesla.

“Slavery-like conditions,” as defined under Brazilian law, include any work that violates human dignity, such as forced labour or debt bondage. The MPT labelled the living conditions as “alarming” and emphasised the urgent need for accountability.

The incident casts a shadow on BYD’s reputation as it continues to dominate the EV market, surpassing Tesla in sales during late 2023. It also highlights growing global scrutiny of labour practices and supply chain ethics as Chinese EV makers expand overseas.

Amid a backlash against perceived unfair subsidies for Chinese carmakers, Brazil’s crackdown underscores the tension between encouraging foreign investment and upholding workers’ rights.