Brazilian prosecutors have filed a lawsuit against Chinese electric vehicle giant BYD and two of its contractors, accusing them of human trafficking and subjecting workers to conditions akin to
modern-day slavery at a construction site for a new factory.
According to the Public Labour Prosecutor’s Office (MPT) in Bahia state, 220 Chinese workers were rescued following an investigation triggered by an anonymous tip-off. The lawsuit seeks 257 million Brazilian reais (approximately $45.5 million or £33.7 million) in damages from the companies involved.
The MPT alleges that construction workers at the site endured inhumane conditions, including overcrowded housing with minimal sanitation. Some workers reportedly had to sleep on beds without mattresses, and 31 people were forced to share a single toilet. Prosecutors also claim the workers had their passports confiscated and were bound by illegal contracts, subjected to excessive hours, and denied weekly rest.
Additionally, up to 70% of workers' wages were allegedly withheld, and they were required to pay high penalties to terminate their employment agreements.
Brazilian law defines "slave-like conditions" to include practices such as debt bondage and labor that undermines human dignity.
Construction of the factory—located in Camacari, northeastern Brazil—was halted late last year. The facility was originally set to begin operations in March 2025 and would have marked BYD's first EV manufacturing site outside of Asia.
BYD, short for "Build Your Dreams," is one of the largest EV manufacturers globally. In April, it surpassed Tesla in European sales for the first time, according to research firm Jato Dynamics. The company has been expanding aggressively in Brazil, its biggest international market, and has operated a plant producing electric bus chassis in São Paulo since 2015.
BYD has previously stated it maintains a "zero tolerance" policy toward human rights and labor law violations but did not respond to a recent request for comment. Photo by Brücke-Osteuropa, Wikimedia commons.