(New York, January 9, 2026) — Brazilian authorities should ensure full implementation of a December 26, 2025 civil settlement over cases of forced labor involving Chinese workers at BYD’s electric vehicle factory in Bahia state, Climate Rights International said today. The government should also swiftly investigate allegations of ongoing violations at that same facility.

“BYD is now the world’s largest seller of electric vehicles, which are an important tool to fight climate change and to make the transition to a renewable economy,” said Sarah Sax, researcher at Climate Rights International. “But BYD must ensure that it and its contractors—whether in Brazil, China, or any other country—abide by international labor and environmental standards. BYD can now show its commitment by ending its business relationship with the abusive contractors identified by the Brazilian authorities and ensuring that the settlement is implemented in full.”

In December 2024, Brazilian labor authorities and federal prosecutors identified 224 Chinese laborers at BYD’s new electric vehicle plant in Camaçari, Bahia, working in conditions analogous to slavery as defined in Brazilian law. The workers had been living in degrading conditions under armed surveillance; some were alleged to have been trafficked into the country. Many had their passports and salaries withheld by two BYD contractors, China Jinjiang Construction Brazil Ltda. and Tecmonta Equipamentos Inteligentes Brasil Ltda.  

In May 2025, Brazilian authorities launched a civil suit against BYD and the two contractors for labor violations at the Camaçari plant, one of the company’s largest factories outside Asia. In December 2025, the parties agreed to a settlement under which the contractors agreed to pay approximately R$40 million (US$7.5 million) in damages, with BYD as a guarantor in the case of non-payment. Half of the funds is earmarked for compensation to affected workers. The other half is reserved for collective damage contributions, which will be allocated to public labor funds and labor rights groups and will be overseen by Brazilian labor courts and authorities.

The settlement also requires BYD and its contractors to comply with a range of binding labor-rights obligations designed to prevent future abuses, applicable across their operations in Brazil. According to Brazilian labor authorities, these obligations are enforceable through fines for non-compliance and are subject to ongoing oversight by labor inspectors. Many of the affected Chinese workers have reportedly returned to China, raising concerns about whether they will in fact receive the compensation promised under the settlement, Climate Rights International said.

“BYD and its contractors should publicly confirm, with independent verification, that all affected workers have received the payments to which they are entitled under the settlement,” said Sax. “The Brazilian authorities should carefully monitor the compensation process to ensure all payments are made.”

Climate Rights International called on the Brazilian authorities to investigate recent complaints by Brazilian workers at the same BYD factory, Climate Rights International said. In December 2025, Brazilian employees staged demonstrations and submitted a letter demanding improvements in working conditions, citing unsanitary bathrooms, inadequate pay, lack of transportation, and lack of access to drinking water. BYD should engage directly and transparently with workers and unions to address ongoing grievances.

While the case against BYD was not the first time Brazilian labor authorities have investigated allegations against high-profile foreign multinational companies, the case is significant given the company’s status as a major investor in Brazil, its central role in the electric vehicle sector, and Brazil’s growing economic ties with China. BYD was an official sponsor of the recent COP30 in Belem and supplied 130 cars to shuttle delegates. BYD recently surpassed Tesla to become the world’s largest EV maker.

“The willingness of Brazilian authorities to hold BYD accountable for exploitation of workers is a positive signal that no company is above the law and that the transition to renewable energy cannot be built on abuses of worker rights,” Sax said. “The credibility of that message now depends on strict enforcement and protection for all workers, regardless of nationality.”