In an alliance as unexpected as it is symbolically rich, Saudi Aramco, the world's largest oil producer, has just signed a strategic partnership with BYD, the Chinese electric vehicle giant. The objective: to accelerate the development of low-emission transport technologies.
This agreement, concluded between Saudi Aramco Technology Company (SATC) and BYD, provides for cooperation in research and development to advance the energy efficiency and environmental performance of so-called "new energy" vehicles.
A strategic shift for the oil giant
Aware that the all-oil era is coming to an end, Aramco is increasing its initiatives in the field of transport electrification. The Saudi firm states that it wants to explore advanced powertrains and invest in low-carbon fuels, while maintaining a pragmatic approach based on the complementarity of solutions.
By partnering with BYD, which no longer sells any vehicles without a charging port, Aramco is banking on a major player. In 2023, BYD sold 4.27 million new energy vehicles, including 1.7 million 100% electric vehicles and 2.48 million plug-in hybrid vehicles (PHEVs).
BYD and Aramco: two powers with converging ambitions
This agreement could transform the dynamics of the automotive market. Both companies have immense influence in their respective fields. The partnership aims to develop solutions combining energy efficiency and a reduced carbon footprint, with a particular focus on PHEVs, which retain a thermal engine — ideal for markets still dependent on gasoline.
Aramco’s presence growing in the automotive sector
Aramco is not stopping at this one partnership. The Saudi giant also holds a stake in Horse Powertrain, the joint venture between Renault and Geely, dedicated to the design of innovative thermal and hybrid engines. This week, Horse Powertrain unveiled a hybrid concept adaptable to electric vehicle platforms, illustrating a clear desire not to oppose technologies but to integrate them intelligently.
When oil invests in electric
This rapprochement between BYD and Saudi Aramco marks an important step in the energy transition of the automotive sector. It shows that even oil giants are now betting on electrified mobility, particularly in the hybrid segments, capable of adapting to the realities of many global markets.
With colossal resources and a long-term vision, this unprecedented duo could well reshape the future of the automobile, between energy pragmatism and technological innovation.