How telematics is revolutionizing EV and hydrogen fleet financing

What if you could predict an electric or hydrogen vehicle’s residual value down to the last mile? With global EV and FCEV fleets projected to grow by more than 20% annually through 2030, the stakes for financiers have never been higher. Questions around battery health, operational performance, and true asset value are keeping lenders on the sidelines – and slowing the transition to cleaner transport.

However, telematics, the enabling technology for Connected Vehicles, has emerged as a critical solution to serve as the connecting bridge between stakeholders across the eMobility ecosystem by providing transparent, verifiable data on vehicle performance and condition. The latest developments are around technical reliability and quality of data, which has reached a level of maturity that allows seamless integration with commercial and organizational information: the technology can now be used to automatically trigger business decisions on a broad scale (for example Pay-per-use models like carsharing, eScooter rentals “on the go”, etc.)

Telematics data has the potential to transform fleet deployment, create new opportunities for collaboration, and facilitate trust between stakeholders. Financing can be a key enabler while using telematics data.

The financing challenge for next-generation fleets

The shift toward electric and hydrogen-powered fleets represents one of the most significant transitions in transportation history. However, finance companies remain hesitant to fund these new technology fleets due to substantial unknowns regarding long-term performance and residual values.

Unlike traditional internal combustion engine (ICE) vehicles with decades of performance data, electric vehicles introduce new variables, particularly around battery degradation and charging infrastructure which create uncertainty for lenders.

This uncertainty can manifest in more conservative lending practices, higher interest rates, or shorter financing terms, all of which impede the broader adoption of sustainable transport solutions. Financial institutions require reliable, real-time data to assess risks accurately and provide competitive financing terms that make electric and hydrogen fleet acquisition feasible for transport operators.

Battery health: The critical unknown

At the center of EV financing uncertainty lies the question of battery health and longevity. Understanding and accurately assessing battery condition is crucial for determining the long-term value and reliability of electric vehicles.

As Nicola Zingraf Bolton, Head of Physical Asset Data at DLL, notes, "With telematics, it is possible to monitor battery health in a lot of detail. Manufacturers who are bringing EVs to market today use telematics to monitor battery health. This monitoring is essential, not only for manufacturers' warranty validation, but also for financiers assessing asset value over time.”

Battery performance data, including charge cycle count, charging patterns, and degradation rates, provides critical insights that can help predict an EV's operational lifespan and future value. However, as Zingraf Bolton points out, "One of our industry challenges as a financing company is, OEMs don't necessarily share this data with the outside world, yet. It is considered a little bit of a secret sauce." This information asymmetry creates significant barriers to efficient financing.

Creating data transparency between OEMs and financiers

For financing companies, telematics offers a window into actual vehicle usage and health condition rather than relying solely on manufacturer claims or historical data from different brands. However, the current landscape requires data collection from multiple sources.

As Zingraf-Bolton explains: "We need to gather information from two different sources when we're looking to finance an asset; from the classic fleet telematics and the battery management system (BMS), which gives us more detailed insight on battery usage."

This dual-source approach highlights an industry in transition, where data integration remains a work in progress. For optimal risk assessment, financing companies need comprehensive data sets that combine traditional operating metrics with battery-specific performance indicators.

Key data points for risk assessment

Several critical data points emerge as particularly valuable for financiers assessing EV and hydrogen fleet performance:

1. Battery health metrics: Cycle counts, depth of discharge patterns, and degradation rates provide insights into the most valuable component of an EV.
2. Charging behaviors: How frequently and at which power levels vehicles are charged significantly impacts battery longevity. If drivers are not charging the asset correctly, it can be detrimental to the battery health.
3. Geographical usage patterns: Where a vehicle is operating influences battery performance and overall wear. Different climates and terrains can dramatically affect EV efficiency and component degradation.
4. Load profiles: For commercial vehicles, the weight and type of cargo significantly impact performance. It makes a difference if you haul a truckload of steel coils or locally distribute fresh produce.

These data points, when properly analyzed, allow financiers to develop more sophisticated risk models that account for the unique characteristics of electric and hydrogen vehicles.

Startups vs. established players: The technology advantage

The EV ecosystem includes both traditional automotive manufacturers transitioning to electric platforms and new startups building EV-native vehicles. This dynamic creates interesting competitive dimensions that telematics data can help address.

The technology edge and its limitations

Startups in the EV space often begin with significant technological advantages. As Zingraf-Bolton observes, "Startups usually have a huge advantage. They start with the technology of today versus established companies who work with legacy technology that they continue to evolve." This clean-slate approach allows new companies to build software-defined vehicles with sophisticated connected capabilities from the ground up.

However, technology alone doesn't guarantee success. Zingraf-Bolton highlights a common challenge: "Startups have a lot of ideas on what you can do with the data. But the customers, the buyers of these vehicles, are usually not as tech-savvy. If a startup's business application is not sound and doesn’t directly address their customers’ needs, they lose a lot of their advantage."

Translating data into customer value

For both, startups and established manufacturers, the key challenge lies in converting raw telematics data into actionable business intelligence that demonstrates clear value to end users. Raw data has limited value unless it can be interpreted in ways that improve operational efficiency, reduce costs, or enhance performance.

“If it doesn't improve the bottom line of the buyer of an asset, why should they invest?" Zingraf-Bolton emphasizes. Understanding customer business processes is essential to identifying which metrics matter most and how they translate to operational benefits.

Building win-win partnerships through data sharing

The most promising aspect of telematics in the EV financing ecosystem is its potential to create collaborative relationships between traditionally siloed stakeholders. Data sharing facilitates trust and enables all parties to optimize their respective operations.

Collaborative innovation for connected vehicle ecosystems

The complexity of connected vehicle ecosystems requires collaboration. "Most of the manufacturers are looking for ways to differentiate and to connect their assets,” notes Zingraf-Bolton. “It is increasingly becoming a collaborative style of working because a digital offering needs so many different components, and there is not one company out there that has everything figured out."

This collaborative approach can accelerate innovation by combining the strengths of different ecosystem players:

• OEMs contribute vehicle engineering expertise and manufacturing capabilities
• Financial companies provide risk assessment models and capital access
• Technology providers deliver connectivity solutions and data analytics
• Fleet operators contribute real-world operational insights

Process improvements across the ecosystem

When properly implemented, telematics data creates opportunities for process improvement throughout the mobility value chain. For financial institutions, this might mean more accurate risk assessment and dynamic pricing models like Pay-per-Use. For fleet operators, it can enable predictive maintenance and optimal charging schedules. For manufacturers, it provides invaluable feedback on product performance in real-world conditions.

DLL can provide information with telematics, using our Customer Asset Portal to improve our customers’ and partners' day-to-day operations or to be the missing puzzle piece directly to their digital offering.

As Zingraf-Bolton describes: "This ecosystem approach transforms telematics from a monitoring system into a strategic tool to enhance competitiveness for all participants.

Realizing the strategic value of telematics

Telematics stands at the intersection of electrification, connectivity, and new financing models. By delivering transparent, verifiable data on vehicle performance and condition, telematics reduces uncertainty for financiers, optimizes operations for fleet managers, and accelerates adoption of sustainable transport.

DLL’s approach to implementing telematics in financing:

• Integrating information like real-time battery and fuel cell data via our Customer Asset Portal for visibility and verification
• Combining fleet telematics with BMS insights to build robust, data-driven risk models
• Designing dynamic financing solutions—such as Pay-per-Use—based on actual usage patterns
• Collaborating with OEMs and technology partners to tailor digital offerings for end users
• Delivering actionable insights for predictive maintenance, optimal charging/refueling, and efficiency improvements

The key to unlocking telematics' full potential lies in collaborative approaches to data sharing and interpretation. When stakeholders work together to identify relevant metrics and translate them into actionable business intelligence, they create value for the entire ecosystem. As EV and hydrogen fleets continue to grow, the companies that build these collaborative data-sharing partnerships will likely gain significant competitive advantages.

For an industry in transition, telematics offers more than just vehicle monitoring – it provides the foundation for trust, transparency, and collaboration that will shape the future of mobility financing and fleet management.