French carmaker Renault recently announced a partnership with Saudi oil producer Aramco and China’s Geely Automobile Holdings. The agreement outlines that the three companies will become stakeholders in a new company dedicated to researching and manufacturing internal combustion, hybrid and plug-in hybrid powertrain technologies. 

According to the joint statement, Renault and Geely will each hold an equal equity stake, and the company will have an annual production capacity of 5 million engines and transmissions. 

Reuters first reported on the talks in January, noting that the two car makers were in discussions to collaborate with Aramco on gasoline engines and hybrid technologies.

“This partnership with Aramco will give it a head start in the race towards ultra-low-emissions ICE powertrain technology,” Renault CEO Luca de Meo said in the statement.

“Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen,” De Meo said.

Last year, Aramco announced a partnership with Hyundai Motor Co to study advanced fuels that could be used in hybrid engines to reduce CO2 emissions.