As part of Crown Prince Mohammed bin Salman’s plan to diversify the economy away from oil, Saudi Arabia has been investing heavily in the electric vehicle (EV) sector in recent years.
The world’s largest crude exporter and consumer would come together to manage changes in mobility with the agreement to investigate further cooperation on new energy vehicle technology between Saudi Arabia’s state oil business and one of China’s leading electric carmakers.
According to a release, Saudi Aramco and BYD Co. inked a deal to pool research, develop new technologies, and boost transportation efficiency. The businesses didn’t elaborate or say when the agreement may move forward to more official collaboration.
The deal represents a change for Aramco, whose leaders have frequently voiced doubts about how quickly the company is moving away from conventional fossil fuels. Aramco has primarily concentrated on internal combustion engines, although it also makes investments in research into vehicle technology and efficiency. This includes a 10% interest in Horse, a joint venture that Renault SA and Geely Automobile Holdings Ltd. are using to develop drivetrains.
Ali A. Al-Meshari, senior vice president for technology, stated in the statement that “Aramco is investigating a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.” “This work is the result of our conviction that a practical energy transition requires a variety of approaches.”
As part of Crown Prince Mohammed bin Salman’s plan to diversify the economy away from oil, Saudi Arabia has been investing heavily in the electric vehicle (EV) market in recent years. By 2030, he wants around one-third of all vehicles to be electric, and by 2060, he wants to achieve net-zero emissions.
In an effort to support those goals, the PIF, a Saudi sovereign wealth fund, has established its own brand, Ceer, and is the largest shareholder in EV manufacturer Lucid Group Inc. Some have interpreted Tesla Inc.’s recent opening in the country as a sign of faith in the Saudi EV market’s future.
