Authorities in Brazil have stopped the construction of a BYD electric vehicle factory due to shocking labor conditions resembling “slavery.” In Bahia, over 160 workers were rescued from a notorious building site, where prosecutors found them living under dire situations such as unsanitary accommodations with multiple people sharing bathrooms.

The workers, employed by Jinjiang Construction Brazil, reported degrading conditions, including having their passports withheld and their wages seized, essentially trapping them in forced labor. Brazilian law defines such scenarios as debt bondage and forced labor violations against human dignity.

In response, BYD has distanced itself from the construction firm, claiming it is dedicated to adhering to all Brazilian labor laws. The factory was initially expected to begin operations by March 2025 and represent BYD's first manufacturing site beyond Asia. The company also announced that affected workers have been taken to hotels while it reviews compliance with labor standards.

Known as one of the largest electric vehicle manufacturers globally, BYD aims for a significant presence in Brazil — its major international market. However, it faces increased scrutiny as global trade relations shift, particularly with other giants like Tesla.