Aramco has signed a Letter of Intent (LoI) with Geely and Renault Group to develop next-generation hydrogen technologies.

Under the LoI, Aramco will become a potential minority stakeholder in a new powertrain technology company (PWT), to be established by Geely Holding Group (Geely Holding), Geely Automobile Holdings Limited (Geely Auto HK.0175) and Renault Group. The new company will be dedicated to internal combustion and hybrid powertrain technologies.

Aramco’s investment would support the growth of the company, and contribute to key research and development across synthetic fuels solutions and next-generation hydrogen technologies. It is expected that Geely and Renault Group retain equal equity stakes in the new independent entity.

With a global network of 17 powertrain plants and five R&D centers across three continents, the planned company is intended to be a standalone global supplier with a combined capacity of over 5m internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions.