Aramco acquires stake in HORSE Powertrain, partners with Renault and Geely
Saudi Arabia’s Aramco has signed definitive agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the newly established global powertrain solutions company by Renault Group and Geely. This transaction values HORSE at an enterprise value of EUR7.4 billion (USD7.9 billion).
Aramco’s investment, which sees Renault and Geely each retaining a 45% stake, aims to bolster the growth of HORSE Powertrain Limited. This collaboration is set to enhance the development of competitive powertrains and synthetic fuel solutions. HORSE Powertrain Limited, headquartered in London, UK, was formed on May 31, 2024, and is expected to produce five million powertrain units annually, catering to a global market with a portfolio of advanced powertrain technologies.
This strategic partnership aligns with Aramco’s broader vision of contributing to the global energy transition. The company aims to develop and commercialise efficient mobility solutions, including highly efficient internal combustion engines (ICE), hybrid powertrains, and alternative fuels like lower-carbon synthetic fuels and hydrogen. Aramco’s expertise in fuel technologies will significantly contribute to HORSE’s mission of leading the race towards next-generation, low-emission powertrain technologies.
Ahmad O. Al Khowaiter, Aramco executive vice president of Technology & Innovation, emphasised the importance of this investment in developing and deploying efficient and lower-carbon emission internal combustion engines globally. Luca de Meo, Renault Group CEO, highlighted the collaborative effort required to mitigate carbon emissions in the automotive industry, welcoming Aramco as a strategic partner. Daniel Li, Geely Holding CEO, and Matias Giannini, CEO of HORSE Powertrain Limited, also expressed their optimism about the partnership’s potential to pioneer low-carbon fuel technology solutions.
HORSE Powertrain Limited operates 17 global plants and serves nine industrial customers across 130 countries, including major vehicle manufacturers. The company employs around 19,000 people and focuses strategically on markets in China, Europe, and Latin America. With five R&D centres, HORSE is poised to cover all types of powertrain solutions, from full hybrids and long-range plug-in hybrids to internal combustion engines using alternative fuels such as ethanol, methanol, CNG, and hydrogen.
This partnership marks a significant milestone in the automotive industry’s shift towards sustainable solutions. By leveraging Aramco’s fuel technology expertise and the combined resources of Renault and Geely, HORSE Powertrain Limited is set to drive forward the innovation and commercialisation of next-generation powertrains, supporting global efforts to reduce greenhouse gas emissions and achieve a sustainable mobility future.
