“This agreement represents a significant step for Red Bull in its Formula One journey," said team principal Christian Horner.
"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."
A new company, Red Bull Powertrains Limited, has been formed to run the project and will operate out of the Red Bull Technology campus in Milton Keynes.
Both Red Bull and AlphaTauri will continue will run the power units until the next generation of power units is introduced in 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," added Red Bull Motorsport Advisor, Dr 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.”
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