Aramco acquires 10% equity in Horse Powertrain

Aramco, one of the world’s leading integrated energy and chemicals companies, through a wholly owned subsidiary, Aramco Asia Singapore, has completed the purchase of a 10% equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions. 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 on June 28, 2024, and receipt of all applicable regulatory approvals. Aramco’s investment is based on a €7.4 billion enterprise valuation of Horse Powertrain, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake.

Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “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.”

Matias Giannini, Chief Executive Officer of Horse Powertrain, said: “Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver low-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.”

Jamal Muashsher, Chief Executive Officer of Valvoline Global Operations, said: “As a technical partner and supplier to Horse Powertrain, we look forward to applying Valvoline Global’s 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine 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.”

Focus on developing next-gen ICE and hybrid powertrains
Aramco’s investment is expected to accelerate Horse Powertrain’s efforts to develop next‑generation ICE and hybrid powertrains, along with complementary technologies like 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. Thanks to its technology leadership, global manufacturing and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.

Aramco, Renault Group, and Geely share the view that the automotive industry will require a combination of various technologies — including highly efficient ICE, transmissions and hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and lower-carbon hydrogen, as well as vehicle electrification — to support an orderly energy and mobility transition around the world.

Horse Powertrain is expected to have an annual production of five million powertrain units encompassing a portfolio of advanced powertrain technologies. All types of powertrain solutions are covered – full hybrids and long-range plug-in hybrids as well as internal combustion engines that use alternative fuels such as ethanol, methanol, LPG, CNG and hydrogen.