It seems that there's going to be a new kid on the Formula 1 block as Audi is reportedly announcing in early 2022 its decision to join the motorsport. They will join Mercedes-AMG as the two German brands set to compete for dominance at the most elite form of open-wheel racing.

This bit of news was first reported by Autocar, in which the letter by Markus Duesmann (Audi CEO) and Oliver Hoffmann (Audi's Head of Technical Development) wrote a letter addressed to outgoing FIA president Jean Todt, which states the following:

The letter also adds that any decision to enter Formula 1 must still be approved by Volkswagen Group's supervisory board. The letter however adds:

News surrounding the Volkswagen Group's participation in Formula 1 isn't new. Earlier this year, Motorsport reported that Mercedes-AMG is willing to drop the Motor Generator Unit-Heat (MGU-H)--a component that stores and recovers energy to and from the turbochargers of the current engines--from the next-generation Formula 1 powertrain to aid the Volkswagen Group's entry.

The next-generation powertrains are set to be introduced in 2026, and the new regulations will also make Formula 1 more environmentally friendly through the adaptation of more sustainable energy sources such as synthetic fuels. In addition, the new rules to be introduced in 2026 will also reduce the high R&D costs that are needed to develop a Formula 1 racecar.

Earlier this year, Team Audi Sport ABT Schaeffler officially announced its exit in Formula E. With its reported participation in Formula 1 in 2026, Audi will once again have a motorsport series where they can use as an opportunity to advance its powertrain development.

This latest development also comes at a time when the 2021 season of the Formula 1 will see Honda exiting the sport. And what a graceful (albeit controversial) exit it became as Max Verstappen, who was driving the Red Bull Racing Honda RB16B, recently became this year's World Driver's Champion.