“Motorsport is an integral part of Audi’s DNA,” says Markus Duesmann. “Formula 1 is both a global stage for our brand and a highly challenging development laboratory. The combination of high performance and competition is always a driver of innovation and technology transfer in our industry. With the new rules, now is the right time for us to get involved. After all, Formula 1 and Audi both pursue clear sustainability goals.”

The key to getting involved in the world’s most popular racing series is the clear plan to become more sustainable and cost-efficient. The new technical rules, which will apply from 2026, focus on greater electrification and advanced sustainable fuel. In addition to the existing cap on costs for teams, a cost cap for power unit manufacturers will be introduced in 2023. In addition, Formula 1 has set itself the ambitious goal of being a carbon-neutral racing series by 2030.

From 2026, the electric power output for the power units, consisting of an electric motor, battery, control electronics, and a combustion engine, will increase sharply compared to today’s Formula 1 drive systems. The electric motor will then be nearly as powerful as the combustion engine, which has an output of about 400 kW (544 horsepower). The highly efficient 1.6-liter turbo engines run on advanced sustainable fuel—also a prerequisite for Audi’s entry into the series.

The power unit will be built at Audi Sport’s state-of-the-art Competence Center Motorsport in Neuburg an der Donau, not far from AUDI AG’s company headquarters in Ingolstadt. “For the development and manufacture of the Formula 1 powertrain, we will build on the valuable expertise of our motorsport employees, continue to invest in our motorsports center, and also recruit highly specialized professionals,” says Audi Sport Managing Director Julius Seebach, who organized the entry into Formula 1 as part of Audi’s realignment of motorsport.

In Neuburg there are already test benches for F1 engine testing as well as for electric motor and battery testing. Additional necessary preparations are currently being made in terms of personnel, buildings, and technical infrastructure, with everything essential to be in place by the end of the year. A separate company was recently founded for the power unit project as a wholly owned subsidiary of Audi Sport.

Audi will announce a decision on which team they will be lining up with in 2026 by the end of this year.