Saudi Arabian oil giant Aramco has signed a partnership deal with Chinese electric vehicle (EV) and battery manufacturer BYD to collaborate on developing cutting-edge EV technology.
The alliance was formalized through a joint development agreement between Saudi Aramco Technologies Company (SATC), a subsidiary of Aramco, and BYD. Aramco believes this collaboration will substantially enhance vehicle efficiency and environmental performance.
Both companies are set to merge their R&D expertise to drive groundbreaking technological advancements in the EV sector. This partnership follows an event hosted by Tesla in Riyadh on April 10, aligning with Saudi Arabia’s push to expand its EV market.
Luo Hongbin, BYD’s Senior Vice President, emphasized that at the intersection of technological innovation and environmental responsibility, BYD is confident that true breakthroughs arise from openness and collaboration.
Partnering with SATC, the company aims to develop high-efficiency, low-carbon solutions in the EV sector, contributing to the fight against climate change. Saudi Arabia has set a target to increase its EV adoption rate from just 1% to 30% within the next five years. As of 2024, there are only 101 EV charging stations nationwide, highlighting the urgent need for infrastructure expansion.
Ali A. Al-Meshari, Aramco’s Senior VP of Technology Supervision and Coordination, explained that the SATC-BYD collaboration aims to enhance transportation efficiency, building on Aramco’s ongoing research into low-carbon fuels and advanced powertrains. He emphasized that a multifaceted approach is crucial for a pragmatic energy transition, and this partnership exemplifies that strategy.
Meanwhile, BYD continues its global expansion, recently making significant inroads into the Swiss automotive market.
