China’s leading electric vehicle (EV) company BYD has entered into a strategic partnership with Saudi Aramco, the world’s largest oil company. The partnership aims to develop innovative technologies for new energy vehicles (NEVs), including:

• Battery electric vehicles (BEVs)
• Plug-in hybrids (PHEVs)
• Fuel cell electric vehicles (FCEVs)

Why is Aramco, an oil company, investing in EVs?

• Business diversification – Saudi Arabia is preparing for an era of gradually declining oil demand.
• Vision 2030 – the kingdom plans to have 30% of Riyadh’s fleet electric by 2030.
• Technological sovereignty – the first Saudi electric brand Ceer was announced in 2022, but local companies lack competence in the NEV sector.

What will this partnership give BYD?

• Access to the Saudi market – BYD has just started sales in the kingdom, but is already receiving state support.
• Joint R&D – Aramco can offer technologies for synthetic fuels, hydrogen and efficient energy storage systems.
• Large energy projects – in February 2024, BYD won a contract for 12.5 GWh of energy storage systems from the Saudi Electricity Company.

Global context: BYD is advancing, the West is lagging behind

• In 2024, BYD sold 4+ million NEVs, overtaking Tesla.
• In Q1 2025, BYD exports grew by 110.5% (206 thousand electric vehicles). – While Europe and the US impose tariffs on Chinese EVs, BYD is gaining ground in the Middle East, Asia and Latin America.

Hydrogen vs. batteries: what will be developed?

Although BYD is known for its lithium-ion batteries (2nd in the world in production), Aramco is actively investing in hydrogen. Possible areas of cooperation:

• Hybrid systems (PHEV with hydrogen range-extenders).
• Eco-friendly synthetic fuels (e-fuels) for hybrids.
• Joint charging/refueling standards in Saudi Arabia.

Conclusion: Oil and EVs are no longer competitors, but partners

The BYD and Aramco deal shows that even the largest oil players are no longer denying the energy transition, but are adapting to it.

The main question: will Saudi Arabia become a new NEV hub or will it remain a niche market? The kingdom has money and ambition, but competition from China, the EU and the US will be tough.