Saudi Aramco Acquires 10% Stake in Horse Powertrain, a Joint Venture by Renault and Geely Focused on Powertrain Solutions

Aramco will acquire a 10% stake in HORSE Powertrain Limited, a joint venture between Renault Group and Geely, at an enterprise value of €7.4 billion. The partnership aims to advance powertrain technologies, with production capacity reaching 5 million units annually, and develop competitive synthetic fuel solutions. This investment aligns with Aramco's commitment to the energy transition and sustainable mobility, leveraging its R&D capabilities and collaboration with partners.

In a recent groundbreaking development, Saudi Arabia's leading integrated energy and chemicals company, Aramco, announced its acquisition of a 10% stake in HORSE Powertrain Limited [1]. This joint venture, established by the Renault Group and Geely, aims to revolutionize the global powertrain solutions market. With an enterprise value of €7.4 billion [1], this strategic partnership focuses on advancing powertrain technologies and developing competitive synthetic fuel solutions.

HORSE Powertrain Limited, headquartered in London, was formed in May 2024 by Renault Group and Geely to tackle the challenges of sustainable mobility [1]. Aramco's investment of €740 million [1] will be shared equally between Renault Group and Geely, with each retaining a 45% stake in the company. This investment aligns with Aramco's commitment to the energy transition and sustainable mobility, leveraging its extensive R&D capabilities and collaboration with partners.

The strategic partnership aims to produce 5 million units of powertrains annually [1]. This significant production capacity will allow HORSE Powertrain to compete effectively in the market and contribute to the global shift towards sustainable mobility. Moreover, the partnership plans to develop synthetic fuel solutions, further solidifying Aramco's position as a leader in the energy transition.

Ahmad O. Khowaiter, Aramco's Executive Vice President of Technology & Innovation, emphasized the significance of this investment. "Aramco's investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines," he said [1]. This collaborative approach to decarbonizing the automotive industry reflects the shared vision of Aramco, Renault Group, and Geely.

Aramco's investment in HORSE Powertrain aligns with the company's commitment to a sustainable future. By leveraging its expertise in research and development, Aramco aims to facilitate the development of long-term sustainable and accessible decarbonized solutions [1].

The strategic partnership between Aramco, Renault Group, and Geely is a testament to the potential of collaboration in driving innovation and sustainable growth in the global energy and automotive industries.

[1] Renault Group. (2024, June 28). Aramco to acquire 10 equity interest in HORSE Powertrain Limited, the new global powertrain solutions company established by Renault Group and Geely. https://media.renaultgroup.com/aramco-to-acquire-10-equity-interest-in-horse-powertrain-limited-the-new-global-powertrain-solutions-company-established-by-renault-group-and-geely/?lang=eng