China's Geely and French car maker Renault have announced they will invest up to $7.7 billion to launch a new global company that will develop low-emission gas engines and hybrid technology for automobiles.

Both Renault and Geely have large scale factories worldwide, but the new venture will house its executive team in a new headquarters based in Britain. The aim they say is to "consolidate operations and build .. on future plans."

Some 19,000 workers will work in 17 engine factories across three continents, while five research and development hubs could also be set up.

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The Chinese and French carmakers will both hold a 50 percent stake in the new company, which is expected to be launched later this year.

The decision to develop petrol and diesel engines may surprise some, given the emphasis by so many car makers in recent years on developing a range of electric vehicles (EV) as the global motor industry shifts towards developing more green technology.

But a typical new EV is still more expensive than an equivalent petrol or diesel car, which means an affordable second-hand market is still developing amid concerns about the costs and durability of car batteries.

The new Sino-French venture is set to supply engines to car makers such as Volvo, Nissan and Mitsubishi. 

Renault's chief executive Luca de Meo said he was excited to join forces with Geely as it will open the way for ultra low-emission internal combustion engine technologies. Geely's chairman Eric Li said he saw the joint venture as a way to lead the development of hybrid car technologies and low-emission gas vehicles.

It's been a decade since Geely bought the Coventry-based manufacturer that made London's iconic black taxis. It re-branded in 2017, and the cab maker is now known as the London Electric Vehicle Company, to highlight its switch to EV technology. 

It developed London's first electric black cabs, and thousands are now roaming the streets of London. Renault-Geely are also in discussion with Aramco, the world's biggest oil and gas company. 

The Saudi firm is a major emitter of greenhouse gases that contribute to climate change, which is why they're looking to the new company as a site for investment in lower-carbon technologies.

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