EV Evolution: how BNP Paribas is helping shape the future of mobility

After a bruising two years for global M&A, Asia Pacific M&A activity is warming up in 2025, lifting the region’s share of global activity to 27%, its highest level in a decade.

Companies are back in the market, looking for structures that keep them nimble in a changing world. Automotive partnerships show how that flexibility works in practice – and where advisers add value by optimising ownership structure and governance frameworks that align global strategy and local priorities.

Last year, BNP Paribas was financial adviser to Geely on the creation of the EUR8 billion Horse Powertrain joint venture (JV) with Renault Group. The JV format supports both automakers’ ambitions to lead the market for hybrid and combustion powertrain components and systems, while retaining control over operations. The structure also allows for new investors, with Saudi Aramco subsequently joining as a strategic investor.

This approach applies across the automobile sector, from powertrain to the electric vehicle (EV) value chain. Joint ventures give partners strategic flexibility with the benefits of scale and business combination. Richard Griffiths, Head of M&A for APAC at BNP Paribas, notes the approach can be “a template for other OEMs” needing to pivot quickly as technologies and regulations evolve.

Earlier this year, BNP Paribas also advised China’s StarCharge on its joint venture with Schneider Electric to build charging infrastructure across Europe, applying a similar approach while tailoring joint governance to integrate the technology and market presence of both partners. “We’ve got quite an expertise around the EV space, and also around joint ventures,” notes Griffiths. “We’re increasingly seeing them as an attractive option in a broader strategic toolkit for companies.”

BNP Paribas rose to eighth in Hong Kong’s 2024 M&A league tables after advising on five cross-continent transactions, three of them JVs.

Indonesia: from ore to battery hub to economic powerhouse

Nowhere illustrates the pace of the EV transition better than Indonesia. The country controls 54% of the world’s mined nickel and is fast building a “mine-to-pack” ecosystem for batteries. The government is welcoming investments for smelting, cathode and pack assembly, setting off a wave of complex, often cross-border deals.

BNP Paribas has been supporting this momentum by reinforcing its onshore advisory capabilities in Indonesia. This July, the Bank was named Indonesia’s best investment bank for M&A by leading financial publication Euromoney, highlighting a series of landmark transactions. Among several other points, editors mentioned the Bank “advised the state-owned mining holding company on an additional stake purchase in a leading nickel producer – an investment that strengthened the country’s electric vehicle supply chain.”

Beyond minerals, Indonesia’s growing middle class and push into renewables are spawning opportunities in consumer, tech and green energy assets – areas where BNP Paribas pairs strong global expertise with long-standing investor ties across the globe.

“Across sectors, Indonesia offers ample opportunities for corporates and investors. Our long-term investment in our onshore platform in Indonesia allows us to join strategic dialogue early and turn complex ambitions into executable transactions,” says Alexis de Ponsay, Co-Head of Global Sectors & Advisory, APAC, BNP Paribas.

Looking ahead

Tariff regimes, interest rate paths and climate policy will continue to evolve, and structures that keep governance nimble can help companies improve their resilience and support growth. Advisers like BNP Paribas with deep sector expertise and proven structuring know-how will continue to support capital deployment and partnerships across Asia Pacific’s fast-moving landscape, allowing businesses to turn change into opportunity.