Mahindra Racing and Magneti Marelli will also begin a new commercial partnership, with the Italian supplier's branding appearing on the season two M2Electro for the remaining races of the current season, the Mahindra group entity said in a statement.
"As an established EV (electric vehicle) manufacturer and an FIA Formula E manufacturer, we have a mandate to drive the future of EV technology, and that begins with developing the most innovative ideas and components," Mahindra Racing Formula E Team Principal Dilbagh Gill said.
"We have found a shared ambition in Magneti Marelli and we look forward to the first test of the M3Electro," Gill said.
Magneti Marelli, which currently provides technical support to multiple F1 teams for their energy-recovery systems, has developed specialised powertrain components targeting high levels of efficiency.
"Performance, efficiency and reliability are going to be the key elements to race in season three and we believe that the solution developed with Mahindra Racing will be able to demonstrate the capabilities of Mahindra and Magneti Marelli which will help the team to be successful in the FIA Formula E Championship," Magneti Marelli Motorsport Director Roberto Dalla said.