Saudi behemoth Aramco and Chinese electric vehicle giant BYD have signed a joint development agreement to collaborate on technologies to improve efficiency and reduce emissions in new energy vehicles, the companies said on Monday.

The deal, signed between Saudi Aramco Technologies Co., a subsidiary of Aramco, and BYD, will harness the research and development expertise of both firms to pursue breakthroughs in powertrain systems and low-carbon transportation solutions.

Focus on Innovation and Efficiency

“The collaboration between SATC and BYD aims to support improvements, and it builds on Aramco’s extensive research and development of new energy solutions,” said Ali A. Al-Meshari, Aramco’s senior vice president of technology oversight & coordination. “This work stems from our belief that multiple approaches are necessary to support a practical energy transition.”

BYD, one of the world’s largest electric vehicle manufacturers, said the partnership highlights the importance of cross-border cooperation in addressing climate change and accelerating green mobility.

“True breakthroughs come from openness and collaboration,” said Luo Hongbin, Senior Vice President of BYD. “We are confident this will support the world’s efforts to address the climate challenge.”

Expanding Carbon Capture Ambitions

The agreement comes amid Aramco’s broader push into climate technology and emissions reduction. Last month, the state-run oil giant launched Saudi Arabia’s first direct air capture test unit, collaborating with Siemens Energy.

The pilot facility is designed to remove 12 tonnes of carbon dioxide annually and serve as a platform for next-generation materials testing.

DAC and other carbon capture technologies are key to Aramco’s strategy to reach net-zero Scope 1 and 2 greenhouse gas emissions from its wholly owned and operated assets by 2050.

The company is also advancing a large-scale carbon capture and storage hub in Jubail, being developed with partners Linde and SLB. In its first phase, the hub is expected to capture up to nine million tonnes of CO2 annually.

Aramco has emphasized the importance of developing a circular carbon economy and diversifying energy transition strategies as it navigates the global shift towards lower-carbon energy systems.

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