French carmaker Renault and Chinese carmaker Geely are launching a new global company with its headquarters in the United Kingdom.

To develop low-emission petrol, diesel, and hybrid engines, the firms will invest up to €7 billion ($7.7 billion; £6 billion).

With 17 engine factories and five research and development hubs, it will employ about 19,000 people.

As the global automotive industry shifts its focus to electric vehicles, the deal comes at a pivotal time.

The new company will use its UK headquarters to consolidate operations, build on synergies, and define plans for the future, Renault and Geely said in a statement.

Engines will be supplied to car manufacturers such as Volvo, Nissan, and Mitsubishi by the firm later this year.

In a statement, Renault CEO Luca de Meo said, “We are proud to join forces with a great company like Geely to disrupt the industry and open the way for ultra low-emissions ICE technology.”

According to Eric Li, chairman of Geely Holding Group, the company aims to provide automakers around the world with low-emission solutions through hybrid technologies.

According to the firms, Saudi energy giant Aramco may join the venture and is evaluating a strategic investment.

Aramco, the world’s largest oil and gas company, emits greenhouse gases that contribute to global warming.

Amin Nasser, Aramco’s president and chief executive, said the company would increase its investments in low-carbon technologies earlier this year.

• As the world’s top car exporter, China surpasses Japan

• An MG car plant will be built in Europe by the Chinese owner

In countries around the world, including the UK, demand for electric vehicles continues to grow.

A typical new electric vehicle (EV) is still more expensive than an equivalent petrol or diesel vehicle.

Geely, headquartered in Hangzhou, has also invested in electric vehicles.

It bought London Taxi Company, a black cab manufacturer in Coventry, for £11.4 million a decade ago.

As part of its focus on switching to EVs, the cab maker in 2017 renamed itself the London Electric Vehicle Company.

London’s first electric black cab was developed by the company, and around 5,000 of them are currently in use.