Riyadh:The Future Investment Initiative (FII) Institute and Arthur D. Little (ADL) have released a report titled "E-Mobility Transition: Global EV Financing." This report examines how improved financing mechanisms can support the expansion of electric vehicle (EV) adoption worldwide.
According to the Saudi Press Agency, The report identifies five critical gaps that hinder the effective deployment of available capital for EVs: consumer finance, charging infrastructure, risk sharing, supply-chain concentration, and sovereign capital deployment. It emphasizes the need for better mobilization of capital to address these gaps and accelerate economic transformation.
FII Institute CEO Princess Dr. Maha bint Mishari bin Abdulaziz stated that the global transition to electric vehicles requires not only technological access but also appropriate financing. She highlighted the opportunity to effectively utilize capital by bringing together sovereign investors, development institutions, and private capital to support large-scale investments, particularly in emerging markets.
Joseph Salem, Partner and Lead of the Travel, Transportation and Hospitality Practice at ADL Middle East, noted that the EV transition requires improved mechanisms for deploying existing capital rather than new capital sources. He pointed out that the Gulf region has the necessary components, such as patient capital and industrial investment, to bridge these financing gaps.
The report also projects that more than 20 million electric cars were sold globally in 2025, comprising one in four new car sales. Battery pack prices declined by 8% to about $108 per kilowatt-hour, with nearly 70% of battery electric cars in China being more affordable than conventional cars. Additionally, EVs accounted for 40% of new car sales in Vietnam and 25% in Thailand, compared to about 10% in the United States.
The report underscores the disparity in global energy investment, as emerging markets and developing economies outside China, which make up two-thirds of the world's population, receive less than 30% of energy investment. It also highlights the potential of scaling asset-based lending and addressing refinancing issues to improve EV credit access for households and fleet operators.
Furthermore, the report estimates that over $524 billion in charging infrastructure investment may be needed by 2035, with early investments in charging demand attracting more investors. It mentions India’s $412 million Payment Security Mechanism, which protects electric bus operators from payment defaults, as a model for supporting large-scale EV deployment.
To enhance financing, the report suggests combining guarantees, first-loss capital, local-currency protection, and industrial partnerships through an integrated platform focusing on vehicle and charging credit.