FII Institute, Arthur D. Little Report Identifies Five Global EV Financing Gaps, Calls for Better Mechanisms

The Future Investment Initiative (FII) Institute and Arthur D. Little (ADL) have launched "E-Mobility Transition: Global EV Financing," a report examining how better financing mechanisms can support the next phase of electric vehicle (EV) adoption.

 The report identified five interlocking gaps preventing available capital from translating into EV deployment at the required pace: consumer finance, charging infrastructure, risk sharing, supply-chain concentration, and sovereign capital deployment.

 The report builds on FII Institute's broader work exploring sustainable growth, emerging market development, and the future of investment systems, with a focus on how capital can be mobilized more effectively to address global challenges and accelerate economic transformation.

 FII Institute CEO Princess Dr. Maha bint Mishari bin Abdulaziz said: "The global EV transition has reached a point where access to appropriate financing is becoming as important as access to technology. The opportunity now is to use capital more effectively – bringing together sovereign investors, development institutions and private capital to create structures capable of supporting investment at scale, particularly across emerging markets."

 Partner and Travel, Transportation and Hospitality Practice Lead at ADL Middle East Joseph Salem said: "Our analysis suggests that the EV transition does not primarily require new pools of capital; it requires better mechanisms for deploying the capital that already exists. The Gulf has several of the ingredients needed to help bridge that gap – patient capital, industrial investment and logistics capabilities. Connecting those strengths with appropriate risk-sharing and financing structures could help make EV investment across emerging markets more scalable and commercially investable."

 According to the report, more than 20 million electric cars were sold globally in 2025, accounting for one in four new cars. Battery pack prices fell 8% to approximately $108 per kilowatt-hour, while nearly 70% of battery electric cars sold in China were cheaper than the average conventional car.

 The report added that EVs accounted for roughly 40% of new car sales in Vietnam and 25% in Thailand in 2025, compared with around 10% in the United States. Emerging market and developing economies excluding China represent around two-thirds of the world's population but receive less than 30% of global energy investment across the wider energy system.

 The report highlighted that around 1.3 billion adults worldwide lack a financial account. Scaling asset-based lending and addressing refinancing constraints could help households and fleet operators access EV credit, the report found.

 The report estimated that more than $524 billion in cumulative charging investment may be needed through 2035. Underwriting early charging demand could help attract investors, the report said.

 Targeted guarantees can support deployment at scale, the release said. "India's approximately $412 million Payment Security Mechanism protects electric bus operators against payment default by state transport authorities, supporting a program targeting more than 38,000 electric buses," it added.

 The report proposed combining guarantees, first-loss capital, local-currency protection and industrial partnerships through an integrated platform focused on vehicle and charging credit.