Ford (F.US), Stellantis (STLA.US), and others aim to overcome range limitations with extended-range solutions, as gasoline generators become the new "power banks" for electric vehicles.

Traditional automakers such as Ford (F.US), Stellantis (STLA.US), and Hyundai are planning to launch a new generation of Extended-Range Electric Vehicles (EREV). These models are based on pure electric drive and are additionally equipped with a gasoline generator to recharge the battery when it runs low. According to reports, Stellantis plans to launch a Jeep Grand Wagoneer EREV SUV later this year or in early 2027, followed by a second EREV modelthe Ram 1500 REV pickup. This pickup will be equipped with a large-capacity electric vehicle battery and a V-6 gasoline engine specifically for charging the battery, with a combined range of up to 690 miles (approximately 1,110 kilometers). Hyundai is expected to launch the next-generation Santa Fe SUV's EREV version in 2027, with a range of about 600 miles; its luxury brand Genesis will also introduce similar models. Ford halted production of the all-electric F-150 Lightning pickup at the end of last year but now plans to "revive" the model in an EREV format. Most plug-in hybrid electric vehicles (PHEVs) commonly seen on the road essentially still fall under the category of gasoline vehicles, equipped only with small-capacity batteries to provide limited all-electric range. In contrast, EREVs are designed with a pure electric architecture, where the gasoline generator serves solely as a power source for the battery, with no mechanical transmission connection between the generator and the wheels. Engineer Nick Phucas noted that the EREV concept is quite attractive, but he has concerns about its actual performance: "If my all-electric range runs out and I fill up with gasoline, what is the total range of the vehicle at that point?" From a business perspective, EREVs can afford to have a smaller battery capacity compared to pure electric models (for example, reducing from 150 kWh to around 100 kWh), significantly lowering material costs. Additionally, the technology for gasoline generator units is mature, and the supply chain is stable, unlike high-voltage electric drive systems that face capacity bottlenecks. For traditional automakers that urgently need to improve profit margins, this approach satisfies strict carbon emission regulations (EREVs can still qualify as "zero emissions" under most conditions) while allowing for the continued use of existing internal combustion engine factories and engineering capabilities, thus avoiding large-scale layoffs and asset depreciation. However, investors should remain cautious about risks. Analysts point out that EREVs are not a ultimate solution, and their long-term competitiveness depends on the relative pricing of oil and electricity as well as the speed of improvements in charging infrastructure. If the U.S. fast charging network achieves "gas station-level" coverage in the coming years, EREVs may become a transitional technology, and todays investments by automakers could face sunk costs.