Honda will return to Formula One racing by supplying engines to Aston Martin's F1 team starting in 2026 and competing as Aston Martin Aramco Honda.
The start of the partnership will coincide with new F1 rules that require engines to be up to 50 percent electric and for cars to use fully-sustainable ethanol as fuel.
Honda CEO Toshihiro Mibe said F1's push for sustainability is in line with the company's carbon neutrality goals.
"The key for winning will be a compact, lightweight, and high-power electric motor with a high-performance battery capable of handling high and swift power output, as well as the energy management technology," he said.
"We believe that the technologies and know-how gained from this new challenge can potentially be applied directly to our future mass production electric vehicles, such as an electric flagship sports model, and electrification technologies in various areas," Mibe added.