Following the signing of definitive agreements on 28 June 2024 (earlier post), Aramco has completed its acquisition of a 10% equity stake in Horse Powertrain Limited based on an enterprise value of €7.4 billion. The transaction builds on Aramco’s efforts to develop new mobility solutions with the potential to reduce transport emissions.

Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% equity stake in Horse Powertrain The investment solidifies a key strategic partnership between Horse Powertrain and Aramco, leveraging their collective expertise and resources to pursue advances in powertrain technologies, synthetic fuels, and lubricants.

The partnership builds on Aramco’s research and development (R&D) efforts in lower-carbon mobility solutions, aims to contribute to transport emission reductions, and helps to pursue Horse Powertrain’s vision of becoming a consolidated powertrain Tier 1 supplier to accelerate the energy transition.

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. 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. 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.

—Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation

Aramco’s investment is expected to accelerate Horse Powertrain’s efforts to develop next‑generation ICE and hybrid powertrains, along with complementary technologies such as alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants.

Horse Powertrain aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions. The company expects to produce some 5 million powertrain units every year.