Saudi Aramco, the world’s largest oil producer, has partnered with Chinese electric vehicle giant BYD to develop new-energy vehicle technologies. The agreement, announced on Monday, aims to “foster the development of innovative technologies that enhance efficiency and environmental performance,” according to a joint statement from the companies. This move comes as Saudi Arabia seeks to diversify its economy, which is heavily reliant on oil exports.
The partnership between Saudi Aramco Technologies Company, a subsidiary of the Saudi oil giant, and BYD will focus on developing technologies that combine high efficiency with lower carbon footprints. Ali A. Al-Meshari, Saudi Aramco’s senior vice president of Technology Oversight and Coordination, stated that the company is exploring various ways to optimize transport efficiency, including innovative lower-carbon fuels and advanced powertrain concepts.
Luo Hongbin, BYD’s senior vice president, emphasized that the collaboration between SATC and BYD’s cutting-edge R&D capabilities in new energy vehicles will help incubate solutions that break geographical and mindset boundaries. The announcement was made ahead of the Auto Shanghai exhibition, one of the world’s largest automotive industry shows.
This partnership is part of Saudi Arabia’s broader efforts to transition towards cleaner energy and reduce its dependence on oil exports. The country 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 signed an agreement with Hyundai to build an electric and thermal vehicle factory in Saudi Arabia.
The development is also timely given the growing interest in electric vehicles in Saudi Arabia. BYD opened a showroom in Riyadh last year to market affordable electric cars, while Tesla launched its first showrooms in the country on April 10. A locally launched EV brand, CEER, is expected to begin production this year.
The collaboration between Aramco and BYD represents a significant step towards the development of new-energy vehicle technologies in the region, aligning with Saudi Arabia’s vision to diversify its economy and reduce its carbon footprint.
