Aramco and BYD announce car technology alliance

Saudi oil giant Aramco and Chinese electric vehicle leader BYD announced Monday a new partnership focused on developing next-generation vehicle technologies.

The collaboration marks another step by Aramco into the automotive sector, where it already has a joint venture with France’s Renault and China’s Geely to manufacture thermal engines.

Now, its subsidiary Saudi Aramco Technologies Company (SATC) is joining forces with BYD—China’s major EV and hybrid manufacturer—though the financial details and scope of the agreement were not disclosed.

In a joint statement, the companies said the partnership aims to “foster the development of innovative technologies that enhance efficiency and environmental performance.”

The announcement comes just before Auto Shanghai, the world’s biggest auto industry exhibition, which opens Wednesday.

Ali A. Al-Meshari, Aramco’s Senior Vice President of Technology Oversight and Coordination, said the company “is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.”

BYD’s Senior Vice President Luo Hongbin added, “SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint.”

Saudi Arabia is pushing to diversify its economy beyond oil and aims to install 5,000 EV charging stations by 2030.

The country’s sovereign wealth fund holds a 60% stake in California-based luxury EV maker Lucid, and it has also signed a deal with South Korea’s Hyundai to develop a combined electric and thermal vehicle manufacturing facility in the kingdom.

Saudi Arabia’s own EV brand, CEER, launched in 2022, is expected to start production this year.

Meanwhile, BYD opened a showroom in Riyadh last year, offering affordable EVs in a market where fuel is cheap and charging infrastructure is still limited.

Tesla followed suit, opening its first showrooms in the kingdom on April 10.