Renault SA (OTC:RNLSY) inked a joint venture (JV) deal with Geely Automobile Holdings Ltd (OTC:GELYF) to launch a new powertrain technology company.

The new company will have 17 engine plants and 5 R&D centers across three continents and provide PWT solutions to multiple OEMs.

Both entities will hold 50% of the company, which aims to become a leader in manufacturing and supplying hybrid powertrains and highly efficient ICE powertrains.

As previously announced, Aramco has penned a letter of intent with Geely and Renault Group to invest in the new powertrain technology company.

The deal is expected to take place in H2 2023.

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The companies project the JV's complementary product portfolio and geographical reach to aid in catering to 80% of the global ICE and hybrid market.

The new JV firm is expected to have an annual production capacity of up to five million internal combustion, hybrid, and plug-in hybrid engines and transmissions annually.

Apart from this, Geely Auto and Renault plan to ink a long-term procurement deal from the JV for ICE, hybrid, and plug-in hybrids powertrains (engine and transmissions) for passenger vehicles.

Also, Renault intends to procure powertrains from the JV for light commercial vehicles and create hybrid batteries.

Also Read: Renault Inks Low-Carbon Battery Deal With Verkor For Use In Upper Segment Vehicles

Price Action: RNLSY shares closed higher by 0.49% at $8.26, and GELYF shares closed lower by 0.79% at $1.25 on Monday.