The automaker will spend the money on research and development primarily in areas such as clean power plants and technologies related to fuel cells and batteries. All the knowledge gained in F1, especially in the areas of energy management and fuel technologies, will be transferred to the new research center.

Honda has said it has achieved its goal of racing on three wins last season and two in 2020. The company is currently producing turbocharged hybrid powertrains for the second-ranked Formula One team, Red Bull Racing, alongside neighboring Scuderia AlphaTauri.

The company has so far been reluctant to build electric vehicles, preferring to rely on traditional gasoline cars and hybrids, and in the carbon-neutral area has focused on hydrogen fuel cell technology. The company recently launched its first electric car in a long time, the Honda E, although even that was not easy and was the result of internal strife. The fact that the company has set a goal to be carbon neutral by 2050 means it will now develop electric vehicles at an accelerated pace.