Saudi Arabian oil company Aramco has made an exciting move by signing a letter of intent to become a minority stakeholder in a new powertrain technology company (PWT) that will be established by Geely Holding Group, Geely Automobile Holdings Limited, and Renault Group. The PWT will focus on internal combustion and hybrid powertrain technologies, and Aramco’s investment in the company will contribute to important research and development in synthetic fuels solutions and next-gen hydrogen technologies.

The planned PWT will be a standalone global supplier with an impressive combined capacity of over five million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions. Geely and Renault Group are expected to retain equal equity stakes in the new independent entity.

Aramco’s involvement in the new company brings unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen. The partnership between Aramco, Geely, and Renault Group will undoubtedly help the joint Powertrain company reach the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology.