The factory is located in the northeastern part of the state of Bahia and is expected to become BYD's largest electric car factory outside of Asia.
The situation for the workers is described as alarming, in a statement from the regional authorities who inspected the factory.
The workers slept on beds without mattresses. Food was mixed with personal belongings due to a lack of storage. Over 30 people shared a bathroom, which forced them to get up at 4:00 am to get ready for a work shift that started at 5:30 am.
Once at the factory, they were exposed to intense sunlight that caused visible skin damage.
The authorities suspect that forced labor has occurred since the workers had their passports confiscated.
BYD's subsidiary in Brazil has announced that they have immediately terminated the contract with Jinjiang Construction Brazil, the company responsible for the construction on behalf of BYD.
Furthermore, the subsidiary stated that they do not tolerate violations of Brazilian law and that they have placed the 163 affected workers in hotels in the region.