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.

The deal is expected to take place in H2 2023.

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.

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.