Aramco agrees to a letter of intent with Geely and Renault Group for collaboration in a new venture focused on low-emission automotive technology.
In a groundbreaking move, Geely Holding Group, Renault Group, and Saudi Arabian Oil company Aramco have announced the formation of a new independent powertrain company, PWT. The partnership aims to accelerate the development of breakthrough innovations in synthetic fuels and hydrogen powertrains.
The creation of PWT involves participation from entities in Hangzhou, Hong Kong SAR, China, Boulogne-Billancourt, France, and Dharhan, Saudi Arabia. This global collaboration will see Geely and Renault Group retaining equal shares in the new company, while Aramco is expected to become a minority shareholder.
Daniel Li, CEO of Geely Holding Group, expressed his excitement about the partnership, stating that Aramco's investment is a recognition by global industry leaders of the business potential for powertrains. Luca de Meo, CEO of Renault Group, echoed this sentiment, adding that the partnership with Aramco will accelerate the powertrain activity with Geely Group.
Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, also expressed his support for the collaboration, stating that it provides a base for supporting Aramco's research and development in engine innovation. He further mentioned that the partnership aligns with Aramco's continued commitment to global entry technologies.
PWT will serve over 130 countries and regions and will have a global network of 17 powertrain plants and 5 R&D centers spread across 3 continents. The new company, a standalone global supplier, will focus on thermal and hybrid powertrain technologies.
Aramco's investment in PWT will be used to support the company's growth and contribute to research and development, particularly in synthetic fuel solutions and next-generation hydrogen powertrains. Mohammed Y. Al Qahtani also stated that the collaboration project will support powertrain development across the entire automotive industry.
The partnership between Aramco, Geely, and Renault Group is expected to support the growth of the new powertrain company, PWT. Aramco's participation was facilitated by Mubadala Investment Company, which signed a letter of intent in March 2023 to potentially become a minority owner in PWT.
The partnership will not only bolster Aramco's broader efforts across its global operations but also contribute to research and development in the field of engine innovation. Daniel Li also highlighted Aramco's pioneering vision on low-carbon or carbon-neutral fuels such as methanol and hydrogen, which will be a key focus area for PWT.
With this strategic alliance, the automotive industry is set to witness significant advancements in powertrain technology, paving the way for a more sustainable and efficient future.
