Red Bull Racing and sister team Alpha Tauri will continue to run Honda Power units beyond the end of the 2021 season, when the Japanese manufacturer leaves Formula One until 2025.
The F1 Commission unanimously agreed to an engine freeze from 2022 to 2024 that prevents other manufacturers from further developing their engines. This paved the way for Red Bull to take over the intellectual property rights of the Honda power units and keep using them until 2025.
To facilitate the power units, a new company called Red Bull Powertrains Limited has been formed and will function out of Red Bull's base at Milton Keynes.
Red Bull announced on Monday that they had struck an agreement with Honda, ensuring that both the Red Bull teams - Red Bull Racing and Scuderia Alpha Tauri - will run the engine until 2025.
"We have been discussing this topic with Honda for some time and following the FIA's decision to freeze power unit development from 2022, we could at last reach an agreement regarding the continued use of Honda's hybrid power units," said Red Bull advisor Helmut Marko.
"We are grateful for Honda's collaboration in this regard and for helping to ensure that both Red Bull Racing and Scuderia AlphaTauri continue to have competitive power units."
"The establishment of Red Bull Powertrains Limited is a bold move by Red Bull but it is one we have made after careful and detailed consideration."
"We are aware of the huge commitment required but we believe the creation of this new company is the most competitive option for both teams."
"Red Bull Powertrain Ltd" a significant step in the team's F1 Journey
Team boss Christian Horner termed the announcement a "significant step in Red Bull's F1 Journey."
"We were understandably disappointed when Honda made the decision to leave the sport as an engine manufacturer, as our relationship yielded immediate success, but we are grateful for their support in facilitating this new agreement,"
"Honda has invested significantly in hybrid technology to ensure the supply of competitive power units to both teams. We now begin the work of bringing the power unit division in-house and integrating the new facilities and personnel into our Technology Campus."
"In the meantime, we are fully focused on achieving the best possible results in what will be Honda's final season as an official power unit supplier."