Aramco joins Geely, Renault to create new powertrain technology company
An investment by Aramco is expected to support the development of next-generation hydrogen technology and synthetic fuel solutions.
The new corporation aims to produce more than five million internal combustion, hybrid, and plug-in hybrid engines and transmissions annually.
Aramco has signed a letter of intent to join Geely Holding Group (Geely Holding), Geely Automobile Holdings Limited (Geely Auto HK.0175), commonly referred to as "Geely," and Renault Group in the establishment of a new powertrain technology company (PWT). Internal combustion and hybrid powertrain technologies will be the only focus of the new business.
Aramco's investment would help the business expand and advance important research and development projects involving next-generation hydrogen technology and synthetic fuels. It is anticipated that Geely and Renault Group will each have an equal share of the new independent company's shares.
The planned company is designed to be a stand-alone global supplier with a combined capacity of over five million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions. It will have a global network of 17 powertrain plants and five R&D centers spread across three continents.
"This letter of intent represents a new milestone in our ongoing commitment to transportation technologies and presents a platform to support Aramco's research and development in engine innovation," said Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream. In line with our larger efforts across our global business, our proposed collaboration with Geely and Renault would boost the development of powertrains across the automotive sector.
"This partnership with Aramco will raise our joint powertrain company with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology," said Luca de Meo, CEO of Renault Group. With its participation, Aramco contributes special expertise that will support the creation of ground-breaking breakthroughs in the sectors of hydrogen and synthetic fuels.
Geely Holding Group CEO Daniel Li stated: "We encourage Aramco to join us in creating an internationally recognized sustainable powertrain firm. The planned investment by Aramco shows that major players in the industry around the world are supportive of PWT's potential for growth and commitment to developing low-carbon fuels like methanol and hydrogen.