Saudi Aramco Group has signed a letter of intent to become a minority shareholder in a new power unit production company to be created by Renault Group together with China’s Geely. This is one of the oil company’s largest investments in the automotive industry.

Saudi Aramco’s market capitalization is $1.8 trillion, making it the second most valuable company in the world after Apple ($2.3 trillion).

In 2022, Aramco signed a partnership agreement with Hyundai Motor to study the development of better fuel for use in hybrid vehicles to reduce CO2 emissions.

In January, the international press reported that Saudi Aramco could have a 20% stake in a new powertrain technology company, Renault, known as Horse.

The new company, formed by Renault, Geely and Aramco, will have an annual production capacity of more than 5 million internal combustion engines, hybrid and hybrid transmissions and engines, Renault said.

Here’s what Renault says

“Aramco has signed a letter of intent to become a minority shareholder in a new power unit production company to be created by Renault Group together with Geely Holding Group. The new company will be dedicated to internal combustion technologies and hybrid engines.

Aramco’s investment will support the company’s development and contribute to research and development of solutions based on synthetic fuels and next-generation hydrogen power technologies. Renault Group and Geely are expected to retain equal stakes in the new independent company.”

“The partnership with Aramco will take our joint venture with Geely Group to the next level and place it at the forefront of the race to develop very low emission combustion engine technologies,” said Luca de Meo, Renault Group CEO.

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