Brazil is suing Chinese EV maker BYD over allegations of forced labor, igniting a global reckoning on the ethics of green manufacturing.
At a Glance
- Brazilian prosecutors are suing BYD and two Chinese contractors for $45.3 million over alleged slave labor at a Bahia construction site
- 220 Chinese workers were reportedly held in degrading conditions with armed guards, passport confiscation, and massive wage withholding
- Workers lived in overcrowded housing with no mattresses and unsanitary bathrooms at what will be BYD’s largest factory outside Asia
- BYD has since terminated one contractor but continues to face international scrutiny
- The case raises ethical concerns about global EV supply chains and Chinese labor practices abroad
Human Trafficking at the Heart of BYD’s Expansion?
Brazilian authorities have launched a damning civil lawsuit against Chinese electric vehicle juggernaut BYD over working conditions described as “analogous to slavery.” At the construction site of BYD’s planned mega-factory in Camacari, Bahia, 220 Chinese laborers were allegedly forced to work under armed supervision while living in squalor—with their passports confiscated and up to 70% of their wages withheld.
The lawsuit, seeking $45.3 million in damages, implicates BYD alongside contractors China JinJiang Construction Brazil and the recently renamed Tecmonta Equipamentos Inteligentes Brasil. Prosecutors revealed that all three companies declined to sign a conduct adjustment agreement, suggesting they had no intention of rectifying the labor abuses before being compelled by legal action.
Watch coverage: Brazil Sues BYD Over Forced Labor.
Harsh Conditions and Global Repercussions
The workers’ daily lives reportedly mirrored “modern plantation” conditions. Many were denied mattresses and forced to sleep in overcrowded, poorly ventilated quarters. Bathroom access was limited and inadequate, exacerbating health risks. Skin damage from intense sun exposure and long work hours was widespread, according to the lawsuit.
These revelations shine a harsh light on BYD’s global operations, and by extension, the darker realities of the EV boom. The plant, slated to be BYD’s largest facility outside Asia, is central to the automaker’s Latin American expansion and has been touted as a flagship of China’s clean-energy ambitions. Yet, if proven, these abuses raise disturbing questions about the human cost of that growth.
Corporate Denials, but No Denials of Conditions
BYD has attempted to contain the fallout by terminating its relationship with JinJiang and issuing a statement reaffirming its “non-negotiable commitment to human and labor rights.” The company claims it complies with all Brazilian labor laws and international standards. The Chinese foreign ministry also weighed in, stating that China “places great importance on protecting and safeguarding workers’ legitimate rights.”
However, critics argue that BYD’s response amounts to damage control, not accountability. The fact that it took formal legal action for these abuses to surface casts doubt on the company’s commitment to ethical practices—and on the scrutiny faced by Chinese companies operating abroad.
For now, BYD’s reputation is under fire, and the world is watching to see whether this is an isolated scandal—or the tip of a much darker industrial iceberg.
