90 M C K I N S EY Q UA RT E R LY FDI Shake-Up EXHIBIT 4 FDI in electric vehicles and batteries reconfigured away from China and into a broad set of new hubs. Batteries and auto OEM: top 25 corridors by announced greenfield FDI, 1 2022–25, $ billion Top 25 corridors account for Advanced Size of bubble = FDI inflows, $ 59% of total FDI in sector Economies Emerging Width = corridor size, $ Mainland China Direction = Investor Investee Europe’s announced investments China drove most flowed from both regional partners announcements globally, (40%) and China (33%) focusing on emerging economies and Europe Sweden Mainland China Germany Italy The US accounted for roughly 30% of announcements, driven by Japanese and South Korean firms India secured battery and electric- vehicle-assembly investments from Japanese and South Korean firms Indonesia drew battery investment led by South Korean and Taiwanese firms Canada South Korea Japan Saudi Arabia Malaysia Spain France Hungary UK Türkiye Morocco India Indonesia Taiwan (China) Mexico US Note: Adjusted for inflation based on World Bank US CPI, indexed at 2024. 1. Foreign direct investment. Source: Using data provided by fDi Markets; McKinsey Global Institute analysis