Authorities rescued 163 workers living in inhumane conditions, prompting BYD to sever ties with its construction partner.

BYD has been building the factory with an annual capacity of producing 150,000 cars initially in Brazil, the Chinese EV giant's largest overseas market, as part of plans to start production there.

Jinjiang Group, a contractor for Chinese electric vehicle maker BYD, said on Thursday Brazilian authorities' portrayal of their employees as "enslaved" was inconsistent with the facts and that there were translation misunderstandings.