FII and Arthur D. Little report identifies five global EV funding gaps

The Future Investment Initiative Foundation and consulting firm Arthur D. Little have released a joint report titled "The Road to Electric Mobility: Financing Electric Vehicles Globally," examining the financial challenges facing the adoption of electric vehicles (EVs) across global markets.

The report identifies five interconnected gaps slowing the acceleration of EV adoption: consumer financing, charging infrastructure, risk sharing, supply chain concentration, and the deployment of sovereign capital. It stresses that addressing these gaps requires effective financing mechanisms, especially in emerging markets.

Role of Gulf sovereign capital

The report highlights the potential of Gulf sovereign capital to stimulate investment in the EV sector, noting the region's advantages in bridging financing gaps, including access to long-term capital, industrial investment, and strong logistics capabilities.

In this context, Princess Maha bint Mishari bin Abdulaziz, CEO of the Future Investment Initiative Foundation, emphasized that access to suitable financing is now as crucial as access to technology. She called for more effective deployment of capital through collaboration among sovereign investors, development institutions, and private capital.

Global EV adoption statistics

The report notes that global electric vehicle sales exceeded 20 million units in 2025, accounting for one in every four new cars sold. Battery pack prices have dropped by 8% to around $108 per kilowatt-hour, while China has achieved competitive pricing for EVs compared to conventional vehicles.

The report also shows that EVs made up about 40% of new car sales in Vietnam and 25% in Thailand in 2025, compared to just 10% in the United States. It points out that emerging and developing economies—excluding China—are home to two-thirds of the world’s population but attract less than 30% of global energy investment.

Report recommendations

The report notes that around 1.3 billion adults worldwide lack access to a financial account, hindering consumer financing for EV purchases. It recommends expanding asset-based lending and addressing refinancing constraints to support households and fleet operators.

The report estimates that cumulative investment in EV charging infrastructure will need to exceed $524 billion by 2035. It stresses that securing early demand for charging services is key to attracting investors.

The report also reviews targeted guarantee mechanisms, such as India’s $412 million payment security mechanism, which protects electric bus operators and supports a program for more than 38,000 buses.

It proposes an integrated platform combining guarantees and dedicated loss-absorbing capital, currency risk protection, and industrial partnerships to facilitate commercial financing and support expansion in emerging markets.