Saudi Aramco, the world’s largest oil producer, has announced a partnership with Chinese electric vehicle giant BYD to develop new-energy vehicle technologies. This collaboration marks a significant step in Saudi Arabia’s efforts to diversify its economy, which is heavily reliant on oil exports. The agreement, announced at the Shanghai Motor Show, aims to “foster the development of innovative technologies that enhance efficiency and environmental performance,” according to a joint statement by the companies.
Saudi Aramco’s subsidiary, Saudi Aramco Technologies Company (SATC), will team up with BYD to develop cutting-edge technologies in new energy vehicles. The terms of the accord were not disclosed. Ali Al-Meshari, Saudi Aramco’s senior vice president of technology oversight and coordination, said 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, highlighted that the partnership between SATC and BYD will leverage their combined R&D capabilities to develop solutions that offer high performance while reducing carbon footprint. This move aligns with Saudi Arabia’s broader strategy to invest in electric vehicle technology. The country plans to establish 5,000 EV charging stations by 2030 and has already taken significant steps in the EV sector.
The Saudi sovereign wealth fund holds a 60% stake in Lucid, a California-based luxury EV maker, and has partnered with Hyundai to build an electric and thermal vehicle factory in Saudi Arabia. Additionally, a Saudi EV brand called CEER, launched in 2022, is expected to begin production this year. BYD had opened a showroom in Riyadh last year to market electric cars at affordable prices, while Tesla opened a dealership in Saudi Arabia on April 12.
