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Automaker Renault and Chinese peer Geely on Friday announced the creation of a 50-50 joint venture for hybrid and combustion powertrain components and systems.

The venture, dubbed HORSE Powertrain, expects to reach about 15 billion euros ($16.22 billion) in annual revenue and production of about five million powertrain units a year, the automakers said in a statement.

China’s Geely launches 11 low-orbit satellites for autonomous cars

Matias Giannini will be the venture’s CEO and Geely Holding CEO Daniel Li will be chairman of the board, the automakers said.

The venture has been expected since the beginning of the year but regulatory approval in China was delayed at least three times, sources have told Reuters.

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