Saudi Aramco and BYD, the Chinese electric vehicle giant, have announced a strategic alliance to develop new-energy vehicle technologies. The partnership, revealed at the Shanghai Motor Show, aims to “foster the development of innovative technologies that enhance efficiency and environmental performance,” according to a joint statement from the companies.
Saudi Aramco, the world’s largest oil producer, is already partnered with Renault and Geely in a joint venture producing thermal engines. Now, through its subsidiary Saudi Aramco Technologies Company (SATC), it’s teaming up with BYD to explore advanced powertrain concepts and lower-carbon fuels. The terms of the agreement were not disclosed.
Ali A. Al-Meshari, Saudi Aramco’s senior vice president of Technology Oversight and Coordination, explained that the company is investigating various ways to optimize transport efficiency. “From innovative lower-carbon fuels to advanced powertrain concepts,” Aramco is looking to reduce its environmental impact while maintaining energy efficiency.
Luo Hongbin, BYD’s senior vice president, highlighted the potential of the partnership, stating that SATC’s collaboration with BYD’s cutting-edge R&D capabilities would “break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint.”
This partnership is part of Saudi Arabia’s broader efforts to diversify its economy, which is currently heavily reliant on oil exports. The kingdom plans to establish 5,000 EV charging stations by 2030 and has already taken significant steps in the electric vehicle market. The Saudi sovereign wealth fund holds a 60% stake in Lucid, a California-based luxury EV manufacturer, and has partnered with Hyundai to build an electric and thermal vehicle factory in Saudi Arabia.
BYD has been actively expanding its presence in Saudi Arabia, having opened a showroom in Riyadh last year to market affordable electric cars. This move comes as Tesla recently opened a dealership in the kingdom on April 12. The development of local EV brands is also underway, with CEER, a Saudi EV brand launched in 2022, expected to begin production this year.
