Aramco, a global leader in integrated energy and chemicals, has signed definitive agreements through a wholly owned subsidiary to acquire a 10% equity interest in HORSE Powertrain Limited. This new global powertrain solutions company was formed by Renault Group and Geely on May 31, 2024, and is incorporated and headquartered in London, UK. Aramco joins Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (“Geely”) as stakeholders in this venture.

Aramco is set to acquire a 10% equity interest in HORSE Powertrain Limited, purchasing equal parts from Renault Group and Geely, both of which will maintain 45% equity stakes. The acquisition price, determined by a €7.4 billion enterprise valuation, will be finalized upon meeting customary closing conditions, including regulatory approvals.

This investment aims to strengthen Aramco’s position in the global energy transition by promoting and bringing to market more effective mobility solutions. The agreements also entail collaboration between Aramco and Valvoline on technologies, fuels, and lubricants, aiming to collectively enhance the performance of HORSE Powertrain Limited's internal combustion engines (ICE).

Aramco, Renault Group, and Geely agree that the automotive industry will need a blend of diverse technologies to facilitate a smooth energy and mobility transition globally. This includes highly efficient internal combustion engines (ICE), advanced transmissions and hybrid powertrains, alternative fuels like low-carbon synthetic fuels and low-carbon hydrogen, as well as vehicle electrification.

HORSE Powertrain Limited aims to spearhead the development of next-generation, low-emission technologies. Aramco’s unique capabilities, which include a global network of R&D centers dedicated to researching synthetic fuels, hydrogen, and ICE optimization, can significantly aid in creating more sustainable and accessible low-carbon solutions.

Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, stated: “Aramco’s investment is anticipated to significantly contribute to the global development and implementation of affordable, efficient, and lower-carbon emission internal combustion engines. Collaborating with Geely and Renault, we intend to harness our combined expertise and resources to drive groundbreaking advancements in both engine and fuel technologies. With a strong focus on innovation, our objective is to provide solutions that reduce transport greenhouse gas emissions while fulfilling the needs of vehicle manufacturers and motorists. By establishing a long-term partnership between Valvoline Global, HORSE Powertrain Limited, Renault Group, and Geely through this investment, we are showcasing Aramco’s capability to create and capture value on a global scale.”

Luca de Meo, Renault Group CEO, remarked: “Reducing carbon emissions in the automotive industry is a collaborative effort. It demands the top players to unite, explore new avenues, and create innovative solutions. Today, we welcome Aramco as a strategic partner in HORSE Powertrain Limited. Together, we are forming a dream team to revolutionize the future of ICE and hybrid technologies.”

Daniel Li, Geely Holding CEO, stated: “Reducing greenhouse gas emissions necessitates global collaboration, diverse technological solutions, and the sharing of expertise. With Aramco’s support and proficiency in fuel technologies, HORSE Powertrain Limited is further solidifying its position as a leader in developing low-carbon and carbon-free fuel solutions, including methanol and hydrogen.”

Matias Giannini, CEO of HORSE Powertrain Limited, expressed: “I am thrilled to welcome Aramco to HORSE Powertrain Limited. Their expertise in fuels and hydrogen makes them an excellent partner in our mission to provide advanced, lower-emission powertrain solutions, propelling our industry's carbon reduction initiatives. Together, we will establish new standards for innovation in the automotive sector.”