During a recent trip to China, Ford CEO Jim Farley couldn’t help but admire the country’s fastest growing vehicle segment: Extended Range Electric Vehicles. He recognized the differentiator is that “you don’t have range anxiety.” And he is one of many industry experts interested in bringing more EREVs to the North American market.

So what is an EREV? It is an electric vehicle, propelled by electric motors which are in-turn powered by a battery pack. Like any other EV, an EREV has a charging port so you can plug it in at a public charger or your home charger. But unlike a regular EV, an EREV also has an internal combustion generator motor and a gas tank. Just like a regular ICE vehicle, you can fill up an EREV’s tank and drive down the road without worrying about your next charge.

You can use an EREV just like a plug-in hybrid car. But there is a key difference. A Plug-in hybrid has a more traditional internal combustion powertrain with an electric motor/generator incorporated. But an EREV’s internal combustion engine isn’t physically connected to its wheels.

So why would you choose an EREV over a traditional car or PHEV? First and foremost, when you stamp on the “accelerator” pedal the juice to speed up comes from the battery. When the internal combustion engine can run at a constant, optimal RPM it is much more fuel efficient. It also has fewer moving parts than a traditional car because it has no transmission or driveshaft. Many offer more electric-only range than a PHEV. And in electric mode you get all the torque of direct electric drive, the same as in an EV.

Why would you choose an EREV over an EV? An EREV can get away with a much smaller battery so it may be cheaper–and lighter weight–than a traditional EV. And even the longest-range EV needs to stop to recharge eventually, but an EREV can roadtrip with just fuel up stops at regular gas stations.

It may make sense to you why the number of EREVs sold in China doubled last year. Currently, over 50% of all vehicles sold in China are some form of EV.

After his May trip to China, Ford CEO Jim Farley said of EREVs, “It has a smaller battery, 95% of the trips are going to be all electric, and then you don’t have range anxiety.” Marin Gjaja, the chief operating officer of Ford’s Model e division added, “We really like that solution…You can charge when you want to, not when you have to, and that’s a big, big unlock.”

They aren’t the only automotive executives smitten with EREVs. Michael Dunne is a former General Motors executive in Asia who is now a consultant specializing in the Chinese market, and he too is a fan of EREVs.

“It just makes so much sense for the US market because we like our big vehicles and we like to go at high speeds over long distances…It’s a lifeline to Detroit. They could adopt a practical powertrain, reduce costs, increase range and keep their customers happy in their core segments — SUVs and trucks. We’ve had a reset driven by customers who are thinking pragmatism wins out over idealism. We rushed into electrics before the charging infrastructure was ready. EREVs would be a natural pivot.”

Michael Dunne, automotive industry consultant

The EREVs previously available in the U.S. included the Chevrolet Bolt and BMW i3. Stellantis is developing an EREV truck, the 2025 Ramcharger. Ford has patented an in-bed range extender to transform its F-150 Lightning electric pickup truck into an EREV, but there’s no word on when it will be available.

I will say that after roadtripping from New York to Detroit in an EV, I was impressed by charging speeds and the charging network. I think we have the technology for sedans and wagon-sized EVs that can complete highway roadtrips with no problem. But EREVs may be an important solution for folks who need more rows of seats or long-distance towing capacity.