Hyliion Holdings Soars 54.76% on Saudi Partnership

On May 21, 2025, Hyliion Holdings experienced a significant surge in its stock price, rising by 54.76% in pre-market trading. This substantial increase can be attributed to several key developments and strategic initiatives undertaken by the company.

One of the primary drivers behind this surge is the signing of a strategic memorandum of understanding (MOU) between Hyliion Holdings and Alkhorayef Industries Company, a leading Saudi Arabian industrial conglomerate. This MOU was announced during the Saudi–U.S. Investment Forum 2025 in Riyadh, and it outlines a collaborative effort to validate, adapt, scale, and assemble KARNO Power Modules for the Saudi Arabian market. This partnership represents a potential $1 billion business opportunity and is strategically aligned with Saudi Arabia’s Vision 2030 agenda, which aims to accelerate industrial development and infrastructure growth.

The collaboration between Hyliion and Alkhorayef Industries is expected to bring cutting-edge energy solutions to the Kingdom, addressing its growing energy needs with reliable, decentralized, and sustainable energy solutions. The KARNO Power Modules, developed by Hyliion, are designed to deliver high efficiency, ultra-low emissions, and minimal maintenance, making them ideal for critical applications where energy resilience and uptime are essential. This partnership is a testament to the power of U.S.–Saudi collaboration and the importance of American innovation on the global stage.

Under the MOU, Hyliion and Alkhorayef Industries will conduct a comprehensive validation of two KARNO Power Modules in Saudi Arabia in 2026, focusing on performance under high ambient temperatures, local fuel types, and elevated altitudes. They will also customize solutions to meet the region’s unique energy requirements, including compatibility with LPG, hydrogen, ammonia, and other alternative fuels. Additionally, the companies will explore and establish regional partnerships to scale KARNO Power Module assembly and deployment across the Kingdom.

This strategic initiative builds on the Letter of Intent (LOI) signed in December 2024, advancing the relationship from early-stage collaboration to actionable plans. The companies intend to validate and begin deploying KARNO power solutions in Saudi Arabia starting in 2026. Both the MOU and LOI are non-binding and are subject to the execution of definitive agreements. This collaboration is expected to support Saudi Arabia’s energy diversification and long-term sustainability goals, aligning with initiatives from the Ministry of Environment, Water and Agriculture (MEWA) and the Saudi Electricity Company (SEC).