Brazil Sues BYD for Human Trafficking and Slave-Like Labor Practices

Brazil BYD

$45 Million Lawsuit Targets BYD and Chinese Contractors Over Factory Construction Abuse

Brazil sues BYD for human trafficking and slavery, filing a R$257 million ($45 million) lawsuit against the Chinese EV giant and two of its service providers. The legal action, led by Brazil’s Labor Prosecution Office (MPT), alleges that BYD, along with JinJiang Construction and Tecmonta (formerly Tonghe), subjected 220 Chinese workers to slave-like labor conditions during the construction of BYD’s electric vehicle factory in Brazil.

Investigators found workers living in overcrowded dorms with no basic hygiene, armed security, and confiscated passports. Employment contracts contained illegal clauses, retaining 70% of wages and penalizing workers for early departure. Workers were forced to pay for their airfare back to China and lost all unpaid wages if they quit before six months. MPT is seeking both collective and individual compensation, plus a court-enforced compliance order against all three companies to uphold Brazilian labor laws.

Factory Opening Delayed as BYD Responds to Allegations

The abuses were first uncovered in December 2024, prompting an immediate halt to construction at the BYD site. Authorities described the conditions as consistent with modern-day slavery, with workers denied rest days and assigned just one bathroom for every 31 people. The MPT also confirmed all 220 workers entered Brazil on improper visas, classifying the case as human trafficking.

In response, BYD stated it has been cooperating with Brazilian authorities and intends to issue a formal statement. The company has already delayed the factory’s launch to late 2026. However, reputational damage may deepen as the Brazil sues BYD for human trafficking and slavery case draws global attention, particularly amid rising scrutiny of labor practices in critical mineral and green tech supply chains.

The Metalnomist Commentary

The BYD labor abuse case in Brazil underscores the hidden risks embedded in global clean energy supply chains. For a company at the forefront of the EV revolution, such allegations raise serious ESG and compliance concerns—especially as nations tighten enforcement on labor-linked due diligence in sourcing and industrial partnerships.