Mercedes and Williams are to expand their technical collaboration, with the Grove outfit set to use the German team's gearbox and other components from next season.
Mercedes engines have powered Williams since the hybrid era began in 2014 and from 2022, the German team will also provide gearboxes and related hydraulic components.
Historically, Williams has built its own gearboxes and hydraulics in-house, however, the increased partnership will enable the Grove outfit to implement a more efficient design and manufacturing process in-house in the long-term, allowing the team to focus its resources more effectively in other performance areas. Williams will continue to design and manufacture other chassis parts internally.
"We are pleased to expand our technical cooperation with Williams through this new agreement," said Toto Wolff. "For Williams, it makes sense to acquire the integrated powertrain after running our power units since 2014 and for our team, it makes sense in terms of economies of scale to supply another team under the new rules.
"This is a project we have been discussing with Williams for some time and I am glad we have been able to bring this extension to fruition."
"I'm pleased to see our great relationship with Mercedes extend beyond the supply of engines," added Williams team principal, Simon Roberts. "Williams is an independent team, but Formula One is always evolving, and as a team we must be agile to react to the current climate in order to put the team in the best position to be competitive on track.
"This long-term agreement with Mercedes is a positive step and forms part of our strategic objectives for the future whilst we will still retain our design and manufacturing capabilities in-house."