Hydrogen | Aramco to Acquire 10% Stake in Drive System Company Jointly Owned by Renault and Geely

Location：Home > > Market Intelligence > Hydrogen | Aramco to Acquire 10% Stake in Drive System Company Jointly Owned by Renault and Geely

Hydrogen | Aramco to Acquire 10% Stake in Drive System Company Jointly Owned by Renault and Geely

Date：2024-07-02

Font size：A+A-

Keyword tags： Hydrogen e-Drive

Renault announced on June 28 that Saudi Arabian Oil Company (Aramco) has signed a definitive agreement with Renault, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited to acquire a 10% stake in HORSE Power Train Limited, the joint venture of the drive system between Renault and Geely Group. The acquisition is based on a company valuation of 7.4 billion euros, with Renault and Geely each retaining a 45% stake.

HORSE Powertrain was established by Renault and Geely on May 31, 2024, with its headquarters located in London, UK.

According to the agreement, Aramco will acquire a 5% stake in HORSE Power from both Renault and Geely Group, totaling a 10% share acquisition, while Renault and Geely will each retain a 45% stake. The price paid by Aramco at the time of delivery will be based on the enterprise valuation of 7.4 billion euros.

This investment will enhance Aramco's contribution to the global energy transition through the development and commercialization of more sustainable mobility solutions. The agreements also include cooperation between Aramco and Valvoline in technology, fuels, and lubricants to jointly improve the performance of HORSE Powertrain's internal combustion engines.

Aramco, Renault, and Geely believe that the successful decarbonization of the automotive industry requires a combination of technologies, including efficient internal combustion engines, transmissions and hybrid systems, low-carbon synthetic fuels and alternative fuels such as hydrogen, as well as vehicle electrification, to support an orderly global energy and transportation transition.

The mission of HORSE Powertrain is to lead the next generation of ultra-low emission technologies, and Saudi Aramco's global R&D capabilities and R&D network will help conduct research in synthetic fuels, hydrogen energy, and internal combustion engine optimization, promoting the development of sustainable and feasible long-term decarbonization solutions.

The three parties look forward to leveraging Aramco's support and expertise in fuel technology to further consolidate HORSE Powertrain's leading position in the field of low-carbon and carbon-free fuel technology solutions (such as methanol and hydrogen), and jointly promote the decarbonization process of the energy and transportation industry.

Matthias Janitza, CEO of HORSE Powertrain Limited, said: "I am delighted that Aramco has joined HORSE Powertrain Limited. Their expertise in synthetic fuels and hydrogen makes them an excellent partner for us to provide cutting-edge, low-emission powertrain solutions, driving the decarbonization process of our industry. Together, we will set a new benchmark for innovation in the automotive industry."

Horse Powertrain has 5 R&D centers worldwide, 17 factories, 9 major industrial customers, operates in 130 countries and regional markets, employs a workforce of 19,000 employees, and produces over 5 million powertrains annually, covering all types of powertrain solutions, including full hybrids and long-range plug-in hybrids, as well as internal combustion engines using alternative fuels such as ethanol, methanol, liquefied petroleum gas, compressed natural gas, and hydrogen.

Service Queries

Newest Market Intelligence

Reading Ranking