Geely and Renault have signed a non-binding framework agreement that could see them team-up to produce the internal combustion engines (ICE) of the future.

While carmakers across the globe are being encouraged to switch to a future of elelctric vehicles (EV), with the UK set to ban the sale of non-electrified new cars in 2030, the Chinese and French OEMs have set a new course to manufacture and supply hybrid powertrains and highly efficient ICE powertrains for years to come.

Under the framework agreement, revealed during a Renault Group Capital Market Day in Paris, Geely and Renault Group will hold respective 50/50 equity stakes in the new company.

The new company would supply brands including Renault, Dacia, Geely Auto, Volvo, Lynk & Co, Proton, Nissan and Mitsubishi with engines and could also offer powertrain technologies to third-party brands.

Geely said that the new company planned to operate 17 powertrain plants in three continents, employing around 19,000 people and offering a combined capacity of over five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year.