A few MNCs dominate FDI in e-mobility so far. Tesla, BMW and CATL lead the pack
A handful of multinationals have dominated burgeoning foreign direct investment (FDI) in the electric vehicle (EV) value chain in the past six years, with US-based Tesla, Germany's BMW and Chinese battery maker CATL leading the pack, according to figures from greenfield investment monitor fDi Markets.
Global investment into the electric vehicle supply chain has exploded in recent years as the auto industry transforms itself from one primarily based on combustion engines to battery-based mobility. This electrification rush is such a major driver of FDI and job creation that the most active companies and where they are planning to invest cannot be ignored.
In 2022, more than $106bn was pledged to EV-related projects globally, with most of this money going towards construction of new assembly plants and battery manufacturing facilities, according to fDi Markets. This announced capital expenditure was 162% higher than a year earlier and brought the total since 2016 to more than $250bn. This explosion has been driven in large part by automakers’ and their battery partners making use of government incentives to build out the EV supply chain. This is most notable in the US, where the Inflation Reduction Act and Infrastructure Investment and Jobs Act have allocated billions of dollars for this purpose.