(Yicai Global) March 2 -- Saudi Aramco, one of the world’s largest petroleum firms, intends to pursue a stake in a joint venture established by China’s Geely Holding and French auto giant Renault Group to develop next-generation powertrain technologies.

The Saudi Arabian petroleum and natural gas behemoth has signed a letter of intent to become a minority stakeholder in the JV that will develop synthetic fuel solutions, as well as internal combustion, and hybrid powertrain technologies, the Hangzhou-based carmaker said in a statement today, without disclosing the size and value of Aramco's expected equity stake. Geely and Renault will retain equal equity stakes in the JV after Aramco joins.

In November, Geely and Renault announced they plan to form a 50:50 JV to develop and manufacture hybrid powertrains globally. The JV should run 17 plants and five research and development centers with a total of around 19,000 employees, supplying products to 130 countries, according to Geely.

The JV will have a capacity of over five million engines and transmissions per year, and it could offer powertrain technologies to third-party car brands in the future, the Chinese firm added.

The partnership with Aramco will raise the JV to the next level and give it a head start in the race toward ultra-low-emission powertrains, according to Luca de Meo, chief executive of Boulogne-Billancourt-based Renault. Aramco’s entry will bring its unique know-how to the table to help develop breakthrough innovations in the fields of synthetic fuels and hydrogen, he added.

Editor: Emmi Laine, Xiao Yi