HWA will enter the Extreme E electric off-road SUV racing championship that is being operated by ABB FIA Formula E.
The Mercedes affiliate, which will hand its FE entry over to Mercedes after this weekend's 2018/19 season finale in New York, is the third team to announce its intention to enter XE after Venturi and ABT Sportsline.
Its XE off-road expansion follows HWA establishing its FE presence - it will continue to operate the Mercedes race team from 2019/20 - and forming Formula 2 (with Arden International) and Formula 3 entries for 2019.
"We are looking forward to Extreme E," said HWA CEO Ulrich Fritz.
"This is an even bigger adventure for us than when we joined Formula E last year.
"However, I am confident that we will again be able to demonstrate our 360-degree motorsport expertise in the extreme conditions we will face In the new series.
"We are impressed by the concept and the people behind the series. We have got to know them in Formula E and have worked very well with them.
"The Extreme E project is a great opportunity - for us as HWA, for the technological shift towards more E-mobility, and for a more conscious approach to the environment and finite resources."
It is unclear at this stage if HWA will be building its own powertrain, or adapt the look of its ODYSSEY 21 XE car.
The team can choose to run the base prototype car or build selected areas of its powertrain and adapt the look of the chassis to imitate a road-going model.
"HWA is a highly successful operation and a major, title-winning name in motorsport, so it is fantastic to be able to welcome them into our Extreme E family," said XE CEO Alejandro Agag.
"Extreme E offers an entirely unique proposition in motor racing, with cutting-edge E-SUVs racing head-to-head across five of the most remote locations on the planet with a brand-new engineering challenge for teams and drivers to overcome.
"The sporting offering is turning heads, and the race for the inaugural title is already shaping up nicely.
"I'm looking forward to seeing rivalries reignited and fresh ones formed in a ground-breaking arena."