On May 28, 2025, Brazilian prosecutors filed a lawsuit against Chinese electric vehicle (EV) giant BYD and two of its contractors, alleging the use of slave-like labor conditions and international human trafficking at a factory construction site in Camaçari, Brazil. The case, which seeks damages of 257 million Brazilian reais—approximately $50 million USD—highlights serious labor violations in the EV industry, raising concerns for enthusiasts and manufacturers alike, reports The Independent.
Investigation Uncovers Harsh Working Conditions
The lawsuit stems from an investigation that led to the rescue of 220 Chinese workers from the construction site of BYD’s new factory in Camaçari, located in Bahia state. Prosecutors allege that the workers were brought to Brazil under false pretenses, with visas that did not align with their actual jobs. The labor prosecutors’ office in Bahia revealed the dire circumstances faced by the workers, stating, “Working conditions were extremely degrading. Five settlements were kept by BYD, JinJiang, and Tecomonta. Some workers slept on beds without mattresses and had their personal belongings alongside with their food.” The office further noted, “There were few bathrooms, which were not gender-assigned. In one of the settlements, there was one toilet for 31 people, forcing workers to wake up at 4 a.m. for their personal hygiene before their work.”
These conditions point to significant oversight failures by BYD and its contractors, China JinJiang Construction Brazil and Tecomonta Equipamentos Inteligentes, in ensuring humane working environments. The allegations also include international human trafficking, as workers were reportedly misled about the nature of their employment.
Implications for the EV Industry
The case could have far-reaching effects on the EV industry, particularly for BYD, a major player in the global electric vehicle market. As EV adoption grows, companies are under increasing scrutiny to maintain ethical supply chains and labor practices. This lawsuit underscores the importance of regulatory compliance in international operations, especially in regions like Brazil, where labor laws are strictly enforced. BYD’s new factory in Camaçari is part of the company’s expansion into South America, aiming to produce electric vehicles for the regional market. However, this legal action may delay construction and impact BYD’s reputation among EV owners and enthusiasts who prioritize corporate responsibility.
From a technical perspective, the incident raises questions about the scalability of EV manufacturing. Building a factory requires not only advanced technology for production but also robust systems to manage labor and logistics. If BYD fails to address these issues, it could face challenges in meeting production timelines, potentially affecting the availability of affordable EVs in Brazil and beyond.
BYD’s Response and Next Steps
BYD has stated that it is cooperating with the investigation, emphasizing its commitment to Brazil’s laws and international labor regulations. The company said, “BYD is collaborating with the investigations from the start and will speak about the case during the course of the probe. It also said it respects Brazil’s laws and international labor regulations.” Despite this, the allegations have drawn criticism, with some pointing to a pattern of labor issues in Chinese firms operating abroad. In December 2024, a BYD spokesperson dismissed similar reports as attempts at “smearing” Chinese brands, but the current lawsuit adds weight to the earlier claims.
As the legal proceedings unfold, the EV industry will be watching closely. For EV enthusiasts and buyers, this case serves as a reminder of the ethical considerations behind the vehicles they support. It also highlights the need for stricter oversight in the global expansion of EV manufacturing, ensuring that the push for sustainable transportation does not come at the cost of human rights.
Photos courtesy of BYD
Entdecken Sie mehr von EVXL.co
Melde dich für ein Abonnement an, um die neuesten Beiträge per E-Mail zu erhalten.