Premium car brand Audi is set to compete in the FIA Formula 1 World Championship with a specially constructed power unit beginning in 2026.

The project will be housed at Audi Sport’s Neuburg facility in Ingolstadt. A Formula 1 power train will be produced in Germany for the first time in more than a decade.

The power unit will be built at Audi Sport’s state-of-the-art Competence Center, not far from AUDI AG’s company headquarters in Ingolstadt.

Audi made the announcement during a press conference during the Formula One Belgian Grand Prix at Spa-Francorchamps.

At the event, Markus Duesmann, Chairman of the Board of Management of AUDI AG, and Oliver Hoffmann, Member of the Board of Management for Technical Development, took questions from Formula 1 President and CEO Stefano Domenicali and Mohammed ben Sulayem, President of the International Automobile Federation (FIA).

“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.”

Audi Sport is pooling its strengths for the Formula 1 project and as a consequence is discontinuing its LMDh project.

The motorsport division had recently suspended the development of the sports car for endurance racing.