Saudi Aramco and BYD Collaborate on New Energy Vehicle Technologies

Shanghai: Saudi Aramco and Chinese electric vehicle manufacturer BYD revealed a collaborative agreement on Monday focusing on advancing technologies for new-energy vehicles.

The Saudi oil company is already in partnership with France’s Renault and Chinese automaker Geely in a joint venture for producing thermal engines.

Its subsidiary, Saudi Aramco Technologies Company, is now joining forces with the Chinese EV and hybrid vehicle giant; however, the specific details of the agreement have not been disclosed.

In a joint press release, both companies stated that the collaboration seeks to “encourage the advancement of groundbreaking technologies that improve both efficiency and environmental impact.”

Saudi Aramco, in conjunction with Sinopec, intends to expand the Yasref petrochemicals complex.

The announcement coincided with the opening of the Shanghai Motor Show on Monday.

Ali A. Al-Meshari, Saudi Aramco’s Senior Vice President of Technology Oversight and Coordination, stated that the world’s largest oil producer “is investigating various methods to potentially enhance transport efficiency, ranging from inventive lower-carbon fuels to cutting-edge powertrain designs.”

BYD Senior Vice President Luo Hongbin commented that “SATC and our advanced R&D capabilities in new energy vehicles will transcend geographical limitations and conventional thinking to create solutions that unite superior performance with a reduced carbon footprint.”

Saudi Arabia aims to diversify its economy, which relies heavily on oil export revenues, and intends to establish 5,000 EV charging stations by 2030.

The Saudi sovereign wealth fund possesses a 60 percent share in California-based luxury EV maker Lucid and has also formalized an agreement with South Korea’s Hyundai to construct a factory in Saudi Arabia that will produce both electric and thermal vehicles.

CEER, a Saudi EV brand launched in 2022, is anticipated to commence production later this year.

Chinese EV manufacturer BYD is considering state incentives for a Mexico-based plant.

BYD inaugurated a showroom in Riyadh last year to promote affordable electric cars in a nation where gasoline is inexpensive, and EV charging stations are scarce.

Tesla launched a dealership in Saudi Arabia on April 12.