Overview

• Brazil’s labor prosecutor filed a lawsuit on May 27 seeking R$257 million (about $50 million) from BYD and two contractors over alleged human trafficking and slave-like working conditions
• Investigators found 220 Chinese workers housed in overcrowded camps with one toilet per 31 people, no mattresses and visas that did not match their assigned jobs
• Prosecutors allege contractors withheld up to 70% of workers’ wages and imposed steep contract termination costs that left employees unable to leave
• BYD has rejected the claims as attempts to smear Chinese companies, pledged cooperation with authorities and said it will resume factory production in June 2025
• The Camaçari facility is BYD’s first full-scale EV plant outside Asia, targeting an annual output of 150,000 vehicles and making Brazil its largest overseas market