Saudi Arabian oil and gas company Aramco signed a letter of intent to become a potential minority stakeholder in a new powertrain technology company on Thursday.
Powertrain, the system inside a vehicle designed to propel the vehicle forward, consists of the engine or motor and its internal components.
The new company, dedicated to internal combustion and hybrid powertrain technologies, will be established with equal equity stakes by Chinese multinational automotive company Geely and French company Renault.
Aramco’s investment will contribute to key research and development across synthetic fuels solutions and next-generation hydrogen technologies.
The company’s goal is to become a global supplier of over 5 million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions.
‘This letter of intent represents a new milestone in our ongoing commitment to transportation technologies and presents a platform to support Aramco’s research and development in engine innovation,’ Mohammed Y. Al Qahtani, Aramco executive vice president of downstream, said.
