Wedoany.com Report-Apr. 22, Saudi Aramco and Chinese electric vehicle manufacturer BYD announced a partnership on Monday to collaborate on new-energy vehicle technologies. The agreement, signed by Saudi Aramco Technologies Company and BYD, was revealed during the opening of the Shanghai Motor Show.

The companies issued a joint statement, noting that the collaboration seeks to “foster the development of innovative technologies that enhance efficiency and environmental performance.” Specific terms of the agreement were not disclosed. Saudi Aramco, a leading global oil producer, already partners with France’s Renault and China’s Geely in a joint venture focused on thermal engine production.

Ali A. Al-Meshari, Saudi Aramco’s senior vice president of Technology Oversight and Coordination, stated: “Saudi Aramco is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts.” The company aims to improve transportation sustainability through this initiative.

Luo Hongbin, BYD’s senior vice president, emphasized the partnership’s potential, saying: “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.” BYD, known for its electric and hybrid vehicles, brings significant expertise to the collaboration.

Saudi Arabia is diversifying its oil-dependent economy and has set a goal to establish 5,000 electric vehicle charging stations by 2030. The country’s sovereign wealth fund owns a 60% stake in Lucid, a California-based luxury EV manufacturer, and has partnered with South Korea’s Hyundai to develop a factory for electric and thermal vehicles in Saudi Arabia. Additionally, CEER, a Saudi EV brand launched in 2022, is expected to begin production in 2025.

BYD opened a showroom in Riyadh last year, offering affordable electric vehicles in a market where gasoline prices are low and EV charging infrastructure is limited. Meanwhile, Tesla launched a dealership in Saudi Arabia on April 12, 2025, further expanding the country’s EV market.

This partnership between Saudi Aramco and BYD reflects a shared commitment to advancing sustainable transportation solutions, aligning with Saudi Arabia’s broader economic and environmental objectives.