The logo of German carmaker Audi is pictured on new Audi cars on the sidelines of the Audi AG annual general meeting in Ingolstadt, southern Germany, on May 9, 2018. (CHRISTOF STACHE / AFP)

SPA-FRANCORCHAMPS, Belgium - Audi will enter Formula One from 2026 with a power unit built in Germany under new regulations, the Volkswagen premium brand announced at the Belgian Grand Prix on Friday.

Formula One will have a new power unit from 2026 with the focus on sustainability and a more cost-efficient future, with the Liberty Media-owned sport having a goal of being carbon-neutral by 2030

Audi said it would announce by the end of the year which outfit it would be lining up with. It has been in talks with the Swiss-based Sauber Group, whose team competes under the Alfa Romeo name, according to reports by Reuters and other media.

Formula One will have a new power unit from 2026 with the focus on sustainability and a more cost-efficient future, with the Liberty Media-owned sport having a goal of being carbon-neutral by 2030.

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"Formula One is both a global stage for our brand and a highly challenging development laboratory," said Audi chairman Markus Duesmann in a statement coinciding with a news conference at Spa-Francorchamps.

"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."

President of FIA Mohammed Ben Sulayem (left) and CEO of Audi Markus Duesmann address a media conference ahead of the Formula One Grand Prix at the Spa-Francorchamps racetrack in Spa, Belgium on Aug 26, 2022. (OLIVIER MATTHYS / AP)

Formula One 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.

Markus Duesmann, Audi chairman

The new rules from 2026 will bring greater electrification and the use of advanced sustainable fuel. Power unit manufacturers will also be subject to a cost cap from next season.

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Audi's power unit will be built in Neuburg an der Donau near the carmaker's headquarters at Ingolstadt, with a separate Audi Sport subsidiary being founded for the project.

Adam Baker, a motorsport veteran and former employee of Formula One's FIA governing body, will be chief executive of the Formula One project.

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German rivals Mercedes build their power unit at Brixworth in central England.

Porsche, another Volkswagen Group brand, is also expected to enter Formula One in 2026 in partnership with current championship leaders Red Bull.