Williams has been powered by Mercedes-Benz since the hybrid era began in 2014. From 2022, it will also use Mercedes gearboxes and related hydraulic components.
While Williams has historically built its own gearboxes and hydraulics, the team claim the increased partnership with Mercedes will enable it ‘to implement a more efficient design and manufacturing process in-house in the long-term’.
In turn, that will allow the team ‘to focus its resources more effectively in other performance areas.
Williams has confirmed it will continue to design and manufacture other chassis parts internally.
Williams team principal Simon Roberts said: “I’m pleased to see our great relationship with Mercedes extend beyond the supply of engines.
“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.”
Mercedes boss Toto Wolff added: “We are pleased to expand our technical cooperation with Williams through this new agreement.
“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.”