In a new, equally held joint venture to create gasoline engines and hybrid technology for autos, Geely and Renault will invest up to 7 billion euros ($7.71 billion) each, according to a statement from the French automaker.

At a time when much of the auto industry has been concentrating on the expensive shift to fully electric vehicles, the JV’s goal is to produce internal combustion engines and hybrid systems that are more efficient.

Renault’s operating center will be in Madrid, and Geely’s operational center will be in Hangzhou Bay. The new company’s head office, which is planned to be located in the UK, will be home to an executive team. Last week, Renault announced that its internal combustion unit, known as Horse, had started operations.

Eric Li, chairman of Geely Holding Group, said, “We are happy to be starting this path to become a global leader in hybrid technology, providing low-emission solutions for automakers throughout the world.“

According to Renault, the new firm would have 19,000 workers across 17 engine facilities and five R&D hubs. It is anticipated that it will first offer a variety of industrial clients, including Renault, Geely, Volvo, Proton, Nissan, Mitsubishi Motors, and PUNCH Torino.

In addition, the joint venture will be able to offer powertrain innovations to independent automakers, and it “will welcome partners to further strengthen the value chain,” according to the release.

Up to five million internal combustion, hybrid, and plug-in hybrid engines and transmissions are expected to be produced annually by the JV, according to Renault.

The new business will generate 15 billion euros ($16.53 billion) in income annually, according to Reuters in March.

According to Renault, Saudi Aramco is considering making a strategic investment in the new business after signing a statement of intent with Renault and Geely in March.

According to sources, earlier this year, the Saudi oil producer engaged in advanced negotiations to take a stake of up to 20 percent in the JV.

In recent years, major oil firms have collaborated with automakers to create hydrogen engines and sustainable fuels. But if a deal were to be reached here, Aramco would become the first significant oil company to participate in the auto industry. The inauguration of the joint venture is anticipated for the second half of 2023.