December 2, 2024 – London, United Kingdom; Dharhan, Saudi Arabia; Hong Kong SAR, China; Paris, France – Aramco, a global leader in integrated energy and chemical solutions, has finalized its acquisition of a 10% equity stake in Horse Powertrain Limited, marking a pivotal collaboration in the quest for low-emission mobility solutions. The deal, valued at an enterprise figure of €7.4 billion, underscores a shared commitment to reducing transport emissions and accelerating the energy transition through advanced powertrain technologies.
A Unified Vision for the Future of Mobility
This strategic investment aligns Aramco with automotive powerhouses Renault Group and Geely, who each retain a 45% equity stake in Horse Powertrain. The partnership combines the cutting-edge technological expertise of Horse Powertrain, Aramco’s pioneering work in synthetic fuels and lubricants, and the manufacturing prowess of Renault and Geely. Together, the entities are set to revolutionize hybrid and internal combustion engine (ICE) technologies, paving the way for cleaner and more efficient transportation solutions.
Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, articulated the broader impact of the collaboration:
“Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. Our investment in Horse Powertrain builds on our considerable R&D in this field. In joining forces with two of the world’s leading carmakers, we aim to leverage our collective knowhow to take lower-emission mobility solutions forward.”
Expanding Technological Frontiers
Horse Powertrain has long been a pioneer in hybrid and ICE solutions, boasting 17 global manufacturing plants, five dedicated R&D centers, and an annual production capacity of approximately 5 million powertrain units. The partnership will focus on developing:
- Next-generation hybrid and ICE powertrains: Incorporating Aramco’s expertise in synthetic fuels and hydrogen solutions.
- Alternative fuel technologies: Including ethanol, methanol, LPG, and CNG applications.
- Advanced lubricants and performance enhancements: Through a collaboration with Valvoline Global Operations, a key technical partner and supplier.
Matias Giannini, CEO of Horse Powertrain, emphasized the enhanced value proposition this partnership delivers:
“Aramco’s expertise in alternative and synthetic fuels makes them the ideal partner for us to deliver low-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint.”
Global Collaboration to Accelerate the Energy Transition
The strategic geographic focus of Horse Powertrain, with operations in Europe, China, and Latin America, positions it as a vital player in the global automotive supply chain. The company serves 10 industrial customers across 130 countries, reflecting its significant reach and influence.
By combining Horse Powertrain’s robust production capabilities with Aramco’s R&D in lower-carbon mobility, this partnership is poised to deliver practical, scalable solutions to reduce transport emissions globally.
Leadership Driving Innovation
The strengthened board of directors, now including representation from Aramco, Renault, and Geely, is equipped to steer Horse Powertrain toward its ambitious vision of becoming the leading Tier 1 powertrain supplier. With a focus on innovation, sustainability, and performance, Horse Powertrain is set to redefine what’s possible in hybrid and ICE powertrain technologies.
Ali A. Al Meshari, Aramco’s Senior Vice President of Technology Oversight & Coordination, joins a seasoned board that includes leaders from Geely and Renault, ensuring diverse perspectives and unparalleled expertise guide the company’s future.
Shaping the Future of Mobility Together
This investment solidifies Aramco’s commitment to supporting energy transitions in the transport sector. The collaboration underscores a shared mission: to bridge the gap between the existing automotive landscape and the sustainable future it seeks to achieve. Through this partnership, Horse Powertrain is well-positioned to empower automotive brands globally with cutting-edge, low-emission solutions that meet the diverse needs of today’s motorists while addressing tomorrow’s environmental challenges.
This monumental step forward demonstrates that through innovation and collaboration, the future of sustainable mobility is within reach.
