Saudi Aramco To Collaborate With Chinese EV Giant BYD To Achieve Breakthroughs In New Energy Vehicles

Oil giant Aramco announced on Monday that its wholly owned subsidiary, Saudi Aramco Technologies Company (SATC), has signed a joint development agreement with Chinese electric vehicle giant BYD Co. (BYDDY) to collaborate on new energy vehicle technologies.

The agreement aims to leverage the research and development teams of the two companies to achieve breakthroughs in new energy vehicles that enhance efficiency and environmental performance, the company said.

Aramco’s  Senior Vice President of Technology Oversight and Coordination, Ali A. Al-Meshari, stated that Aramco is already exploring several ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.

BYD Senior Vice President Luo Hongbin expressed optimism about the collaboration.

“We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint,” he said.

BYD manufactures battery electric and plug-in hybrid electric vehicles, together referred to as new energy vehicles.

In the three months through the end of March, BYD sold over a million new energy vehicles, including 986,098 passenger vehicles globally. BYD opened its inaugural showroom in Saudi Arabia last year.

BYD rival Tesla Inc. (TSLA) also launched in Saudi Arabia earlier this month in a bid to expand its markets and increase global deliveries, which fell nearly 13% year-on-year to 336,681 units in the first quarter.

On Stocktwits, retail sentiment around BYD fell marginally but stayed within the ‘bearish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.

BYDDY stock is up by about 37% so far this year and by about 77% over the past 12 months.

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