Aramco recently announced that it completed the purchase of a 10 percent equity stake in Horse Powertrain through a directly and wholly owned subsidiary, Aramco Asia Singapore. The transaction builds on Aramco’s efforts to develop new mobility solutions with the potential to reduce transport emissions. The transaction’s completion follows the signing of definitive agreements in June 2024 and the receipt of all applicable regulatory approvals.
“At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference,” stated Ahmad O. Al Khowaiter, Aramco executive vice president of technology and innovation.
Renault, Geely to retain 45 percent stake
Aramco’s investment is based on a €7.4 billion ($7.78 billion) enterprise valuation of Horse Powertrain. Renault Group and Geely, through Geely Holding and Geely Auto, will each retain a 45 percent stake in the company.
“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 know-how to take lower-emission mobility solutions forward,” added Al Khowaiter.
Aramco, Renault, and Geely share the view that the industry will require various technologies to support an orderly energy transition. Meanwhile, Horse Powertrain’s mission is to lead the race towards lower emission next-generation technologies. Therefore, Aramco’s unique capabilities, including a global network of R&D centers, can help facilitate the development of more sustainable and accessible lower-carbon solutions.
The board of directors of Horse Powertrain will now include seven members: three directors from Geely, three from Renault Group, and Ali A. Al Meshari, Aramco’s senior vice president of technology oversight and coordination.
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Accelerating alternative fuel and hydrogen solutions
Aramco’s investment is expected to accelerate Horse Powertrain’s efforts to develop next-generation ICE and hybrid powertrains. In addition, it will support the development of complementary technologies like alternative fuel and hydrogen solutions.
“Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-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,” added Matias Giannini, CEO of Horse Powertrain.
As part of the transaction, Aramco and affiliate Valvoline Global Operations will also collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants.
“Our newest joint effort with Horse Powertrain and Aramco builds on Valvoline Global’s strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility,” stated Jamal Muashsher, CEO of Valvoline Global Operations.
Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Moreover, it aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions.
