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Aramco Partners With Renault And Geely In Sustainable Mobility Drive
Aramco has finalised agreements to acquire a 10% stake in HORSE Powertrain Limited, valuing the company at €7.4 billion. Renault Group and Geely will each retain 45% equity stakes. This investment aims to support HORSE Powertrain Limited's growth and the development of competitive powertrains and synthetic fuel solutions.
HORSE Powertrain Limited, formed on May 31, 2024, by Renault Group and Geely, is headquartered in London. Aramco's acquisition involves buying equal parts from Renault Group and Geely. The transaction is subject to customary closing conditions, including regulatory approvals.
The collaboration between Aramco, Renault Group, and Geely focuses on developing sustainable mobility solutions. They believe that decarbonising the automotive industry requires a mix of technologies such as efficient internal combustion engines (ICE), hybrid powertrains, alternative fuels like synthetic fuels and hydrogen, and vehicle electrification.
Ahmad O. Khowaiter, Aramco Executive Vice President of Technology & Innovation, stated: "Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally. With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies."
HORSE Powertrain Limited aims to lead in ultra-low emission next-generation technologies. Aramco’s global R&D centres will play a crucial role in developing long-term sustainable solutions through research on synthetic fuels, hydrogen, and ICE optimisation.
Luca de Meo, Renault Group CEO, remarked: "Decarbonizing the automotive industry won’t be a solo play. It requires the best players to join forces to open new paths and come up with innovative solutions."
Global Impact and Production Capacity
The company expects an annual production of five million powertrain units. These units will include advanced powertrain technologies for partners worldwide. HORSE Powertrain Limited operates 17 global plants with nine industrial customers across 130 countries.
Daniel Li, Geely Holding CEO, said: "To achieve net zero emissions will require global synergies, multi-faceted technological solutions, and the sharing of expertise."
Partnerships Enhancing Technological Advancements
The agreements also involve collaboration between Aramco and Valvoline on technologies, fuels, and lubricants to improve HORSE Powertrain Limited's ICE performance. This partnership demonstrates Aramco’s ability to create value globally.
Matias Giannini, HORSE Powertrain Limited CEO, expressed his enthusiasm: "I am delighted that Aramco has joined HORSE Powertrain Limited. Their expertise in synthetic fuels and hydrogen makes them a great partner for us to deliver cutting-edge, low-emission powertrain solutions."
Company Profiles
Aramco: A global integrated energy company focused on making resources more dependable and sustainable. They produce about one-eighth of the world’s oil supply.
Renault Group: Known for its expertise in electrification with brands like Renault, Dacia, Alpine, and Mobilize. The group sold over 2.235 million vehicles in 2023.
Zhejiang Geely Holding Group: A global automotive group owning several international brands like Volvo Cars and Polestar. They sold nearly 2.8 million vehicles in 2023.
Geely Automobile Holdings Limited: An automobile manufacturer focusing on passenger vehicles with significant sales in China.
This strategic partnership among Aramco, Renault Group, Geely Holding Group aims to drive innovation in low-emission powertrains while addressing global environmental challenges effectively.
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