#Saudi Arabia #Geely #Aramco #Horse Powertrain #Dhahran

Aramco's Strategic Investment in Horse Powertrain Limited

On December 2, 2024, Aramco, a leading integrated energy and chemicals company, announced the completion of its acquisition of a 10% stake in Horse Powertrain Limited. This significant investment follows the signing of definitive agreements on June 28, 2024. Valued at 7.4 billion euros, this deal positions Aramco to enhance its capabilities within the evolving market of automotive technologies.

Unlocking New Potentials in Mobility

Horse Powertrain is recognized globally for its innovative hybrid and combustion propulsion systems. The acquisition exemplifies a strategic partnership aimed at jointly developing advanced technologies, including synthetic fuels and lubricants. Notably, Renault Group and Geely each retain a 45% ownership in Horse Powertrain, thereby fortifying a robust collaborative framework among key industry players.

Ahmad O. Al Khowaiter, Aramco's Executive Vice President of Technology and Innovation, highlighted the critical need for diverse strategies to tackle transportation emissions. He stated, "Addressing these emissions requires a comprehensive approach that considers the diverse landscape of the global automotive fleet. At Aramco, we are exploring innovative solutions from lower-carbon synthetic fuels to more efficient internal combustion engines. Our collaboration with Horse Powertrain allows us to leverage our combined expertise for sustainable mobility solutions."

The Vision for Reduced Emissions

Both companies share a vision to significantly lower transport emissions, with an emphasis on research and development (R&D). Aramco's commitment to advancing low-carbon mobility solutions is integral in ensuring Horse Powertrain achieves its goal of being the primary supplier of propulsion systems. The collaboration is set to generate advancements that will facilitate the energy transition needed to mitigate climate change impacts.

Horse Powertrain's Global Reach

Established on May 31, 2024, Horse Powertrain operates 17 manufacturing plants around the world and services approximately 10 industrial customers in over 130 countries, boasting a workforce of around 19,000 employees. The company is committed to producing about five million propulsion units annually, aligning with global manufacturers to offer versatile hybrid solutions, extended-range plug-in hybrids, and alternative fuel combustion engines.

Matias Giannini, CEO of Horse Powertrain, expressed enthusiasm over Aramco's investment, stating, "This partnership equips us to elevate our technology leadership. Aramco's expertise in alternative and synthetic fuels makes them an ideal partner for delivering low-emission propulsion solutions. With this collaboration, we are better positioned to become invaluable partners for automotive brands seeking to innovate and meet regulatory standards."

Collaborating for Future Innovation

As part of the strategic investment, Aramco does not only play a pivotal role in facilitating Horse Powertrain's growth but will also contribute through Valvoline Global Operations. Together, they will focus on developing next-generation combustion and hybrid engines alongside evaluating alternative fuel solutions. Industry veterans foresee this association elevating Horse Powertrain's standing, making it an inimitable supplier of cutting-edge propulsion systems.

With robust global manufacturing capabilities and economies of scale, Horse Powertrain aims to help vehicle manufacturers reduce their overall emissions footprint effectively. Furthermore, their commitment to diversified fuel usage, including hydrogen, biofuels, and various alternative energy sources, underlines their dedication to sustainability in transportation.

Strengthening Governance and Leadership

The governance structure at Horse Powertrain will maintain a balanced representation from its major stakeholders, with three directors each from Geely and Renault Group, along with one director from Aramco. This arrangement ensures that diverse insights and strategic visions will shape the future of Horse Powertrain. This strong teamwork is essential for fast-tracking developments in propulsion systems that adhere to environmental standards and customer expectations.

Looking Ahead

Aramco's acquisition marks a pivotal moment in the automotive industry's journey toward sustainability. By integrating their resources and capabilities, Aramco and Horse Powertrain embody a forward-thinking approach that promises exciting innovations in mobility solutions designed for the future. Their dedication to reducing emissions while maintaining market competitiveness is a testament to the kind of partnerships needed to achieve long-term success in addressing climate change and fostering a sustainable energy landscape.