IFC Invests US$100 Million to Boost EV Adoption in Mexico

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a US$100 million investment in Element Fleet Management Corporation to accelerate the adoption of EVs and charging infrastructure solutions in Mexico. This investment represents the first tranche of a broader US$600 million financing package designed to support Element’s ambitious vehicle electrification strategy in the country.

"Sustainability is not a passing trend for us — it is core to our Purpose to Move the world through intelligent mobility, including who we are and how we hold ourselves accountable to inspire progress. This financing is a testament to our commitment, and an enabler to create an enduring legacy of sustainable and positive impacts within our communities. We are proud to lead these efforts in the region,” says Manuel Tamayo, President, Element Mexico.

The financing includes a US$75 million “A” loan for IFC’s own account, and US$25 million in “B” loans or parallel loans mobilized from other participants. The total package, structured as a sustainability-linked loan, envisions up to US$250 million in A loans and up to US$350 million in B/parallel loans. The framework ties key performance indicators to both decarbonization and gender inclusion goals, reinforcing the IFC’s commitment to climate action and social equity.

The funding will enable Element’s clients in Mexico to acquire a range of electric and hybrid vehicles — including battery electric vehicles (BEVs), hybrids (HEVs), and plug-in hybrids (PHEVs) — and invest in the necessary charging infrastructure. The initiative is projected to generate annual savings of 9,093 metric tons of CO₂ equivalent by 2029, contributing meaningfully to Mexico’s goal of reducing greenhouse gas (GHG) emissions by 35% by 2030.

The initiative also emphasizes diversity and inclusion, aiming to increase the representation of women within Element’s workforce in Mexico. As part of the sustainability-linked structure, these gender-focused metrics underline the importance of building inclusive and resilient economies through transformative investments.

“By promoting the adoption of EVs, this investment will contribute to enhancing the sustainability of Mexico's transportation sector. This is a groundbreaking investment that demonstrates the viability of an innovative fleet management model to increase access to electric vehicles, encouraging others to follow suit,” says Juan Gonzalo Flores, Country Manager in Mexico, IFC.

The IFC’s partnership with Element is part of a broader commitment to sustainable transport. Over the past decade, the organization has committed and mobilized over US$11.3 billion for transport projects in emerging markets, reinforcing the critical role the sector plays in economic growth, climate resilience, and social inclusion.