BYD, Aramco Collaborate On New Energy Vehicle Technologies

Saudi Aramco, the world's largest oil producer and fourth-largest company by revenue, is partnering with BYD, the world's second-largest electric vehicle manufacturer, to develop new energy vehicle technology.
This collaboration shows that the Saudi state-owned oil giant recognizes the need to diversify beyond oil to remain competitive in the future.

The terms of the agreement between Saudi Aramco's subsidiary, Saudi Aramco Technologies Company (SATC), and BYD have not been disclosed. However, this is not Saudi Aramco's first foray into the automotive industry. The oil giant has already established a joint venture with French automaker Renault and Chinese automaker Geely to manufacture thermal engines.
The deal aims to "foster the development of innovative technologies that enhance efficiency and environmental performance," according to a joint statement from both firms.


“We are exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts,” said Saudi Aramco’s senior vice president of Technology Oversight and Coordination Ali A. Al-Meshari.
Meanwhile, BYD senior vice president, Luo Hongbin, stated that the advanced R&D capabilities of SATC and the Chinese carmaker in new energy vehicles will overcome geographical and cognitive limitations to develop innovative ideas that merge high efficiency performance with reduced carbon emissions.

Saudi Arabia, with plans to install 5,000 EV charging stations by 2030, is actively promoting electric vehicle adoption. This initiative is part of the country's strategy to diversify its oil-dependent economy.

The Saudi sovereign wealth fund has partnered with Hyundai to establish an electric and thermal vehicle manufacturing plant in Saudi Arabia and holds a 60% stake in the California-based luxury EV manufacturer Lucid. 


Additionally, BYD opened a showroom in Riyadh last year to promote affordable electric vehicles in the country, where gasoline is inexpensive and EV charging infrastructure is limited. Domestic EV production is also on the horizon, with the Saudi EV brand CEER, launched in 2022, expected to begin production this year.