Aramco boosts powertrain innovation with 10% stake in Horse Powertrain

Aramco, one of the world’s leading integrated energy and chemicals companies, has officially completed its acquisition of a 10% equity stake in Horse Powertrain Limited, a global leader in hybrid and internal combustion powertrain solutions. This transaction, finalized following the signing of agreements on June 28, 2024, and after obtaining all necessary regulatory approvals, is based on an enterprise valuation of €7.4 billion for Horse Powertrain. The deal reinforces Aramco’s strategic push to advance lower-carbon mobility solutions, positioning the company at the forefront of transport emissions reduction.

With Renault Group and Geely each retaining a 45% stake in Horse Powertrain, the partnership brings together some of the largest names in automotive manufacturing alongside Aramco’s expertise in synthetic fuels and energy innovation. This Aramco powertrain investment paves the way for further technological collaboration in the powertrain sector, focusing on hybrid solutions, internal combustion engine (ICE) technologies, and the development of cleaner fuels.

Strategic collaboration to drive sustainable innovation

Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, expressed his optimism about the future of transport emissions. He highlighted that Aramco’s Aramco powertrain investment in Horse Powertrain builds on its substantial research and development (R&D) efforts in low-carbon solutions. Al Khowaiter emphasized the diverse needs of global vehicle fleets and transport infrastructures, stating that innovative solutions such as more efficient ICEs and synthetic fuels are crucial to tackling emissions across different markets.

Matias Giannini, Chief Executive Officer of Horse Powertrain, celebrated the closing of the deal, stating that Aramco’s expertise in synthetic and alternative fuels makes it an ideal partner for the company. Giannini stressed that this collaboration will further strengthen Horse Powertrain’s leadership in hybrid powertrain solutions, benefiting automotive brands worldwide by offering innovative, lower-emission powertrain solutions.

A partnership with global implications

This partnership extends beyond just the acquisition. As part of the deal, Aramco and its affiliate Valvoline Global Operations will collaborate with Horse Powertrain on next-generation ICE technology, fuels, and lubricants. This alliance aims to deliver groundbreaking hybrid powertrain solutions that address the global demand for cleaner transport, particularly through hybrid and alternative fuel powertrains.

Horse Powertrain, with its extensive global footprint—including 17 plants, five R&D centers, and over 19,000 employees—continues to develop a diverse range of powertrain solutions, including hybrids, plug-in hybrids, and internal combustion engines powered by alternative fuels such as hydrogen, methanol, and ethanol. The company’s reach spans 130 countries, serving both industrial customers and vehicle manufacturers, and is poised to produce approximately 5 million powertrain units annually.

Looking ahead: A new era for powertrain technologies

The newly restructured Board of Directors for Horse Powertrain includes key leaders from Geely, Renault Group, and Aramco, marking a balanced partnership with broad strategic input. With this Aramco powertrain investment, Aramco further solidifies its commitment to accelerating the energy transition, leveraging its global resources and technological prowess to shape the future of transportation.

Through this significant stake in Horse Powertrain, Aramco has positioned itself as a key player in the evolving landscape of sustainable mobility solutions. The company’s focus on advancing hybrid powertrain solutions is a critical component in the broader movement toward reducing vehicle emissions and supporting the global transition to cleaner energy solutions.

As automotive and transportation industries look toward the future, this partnership with Horse Powertrain will undoubtedly play a pivotal role in achieving cleaner, more efficient mobility for the next generation.