The agreement is a shift for Aramco, whose executives have often expressed skepticism over the pace of the transition away from traditional fossil fuels. While Aramco does invest in research in vehicle technologies and efficiency, it has mostly focused on internal combustion engines. That includes a 10% stake in a joint venture called Horse to develop drivetrains with Renault SA and Geely Automobile Holdings Ltd.
Saudi Arabia’s state oil company and one of China’s main electric carmakers agreed to explore closer collaboration on new energy vehicle technology, a move that would bring the world’s biggest crude exporter and consumer together to navigate changes in mobility.
Saudi Aramco and BYD Co signed an agreement to combine research, find new technologies and improve transport efficiency, according to a statement. The companies didn’t provide further detail or indicate when the deal might advance to more formal cooperation.
