It’s the end of hydrogen, electricity and even nuclear energy

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Stellantis, one of the world’s largest automakers, is making waves with its historic $6 billion investment in South America’s ethanol energy-based Internal Combustion Engines (ICEs). This commitment, expected to produce more than 40 new cars by 2030, shifts the focus away from electricity and hydrogen and firmly supports biofuels and hybrids.

While many other manufacturers are transitioning to electric vehicles, Stellantis is embracing flexible fuel engines that operate on both gasoline and ethanol, especially in regions where ethanol is more accessible.

Why flex-fuel engines are at the heart of Stellantis’ future mobility strategy for eco-friendly transport Flex-fuel engines are a cornerstone of Stellantis’ investment strategy. These versatile engines can run on either gasoline or ethanol, which makes them more adaptable and environmentally conscious than traditional gasoline engines.

Ethanol, a renewable fuel derived primarily from sugarcane and corn, has long been blended with gasoline in countries like Brazil. Ethanol burns cleaner than gasoline and has been instrumental in reducing the automotive industry’s carbon footprint.

Stellantis’ decision to invest heavily in ethanol-powered engines aligns with its vision for vehicles that produce fewer emissions while maintaining high efficiency. This move is particularly beneficial in South America, where ethanol is abundant and inexpensive. Brazil, the world’s largest ethanol producer and consumer, offers the perfect market for Stellantis to leverage its flex-fuel technology and capitalize on the existing infrastructure for ethanol distribution.

By utilizing flex-fuel engines, Stellantis is taking a multi-pronged approach to decarbonization. While the company acknowledges the importance of electrification for the automotive industry’s future, ethanol offers a more immediate solution in regions where electric vehicles (EVs) are not yet practical or affordable. Ethanol in internal combustion engines offers a sustainable alternative that reduces emissions while decreasing costs.

Hybrid-flex and plug-in hybrid technology: Stellantis’ innovative blend of ethanol and electricity In addition to flex-fuel engines, Stellantis is advancing hybrid-flex and plug-in hybrid-flex powertrains. These powertrains combine ethanol and gasoline engines with electric motors, offering consumers an eco-friendly and efficient means of transportation that doesn’t rely entirely on fossil fuels. As a result, Stellantis is poised to be at the forefront of green automotive technology, with a significant focus on sustainability.

Hybrid-flex vehicles will also feature a battery component, which enhances fuel efficiency and reduces emissions. Stellantis is committed to producing affordable and sustainable vehicles that meet consumer demand while advancing its electric vehicle agenda. The company has plans to launch an all-electric model in South America to cater to the region’s growing appetite for electric cars.

Stellantis’ approach allows for continued internal combustion engine development while progressively transitioning toward electric vehicles. This strategy provides an essential middle ground for regions where electric vehicle infrastructure is still in infancy. By combining ethanol engines with electric technology, Stellantis can maintain its competitiveness in diverse markets while meeting the increasing global demand for greener, more sustainable modes of transport.

South America: A pivotal region for Stellantis’ $6 billion investment and future automotive expansion South America plays a crucial role in Stellantis’ international expansion plans, making this $6 billion investment in engine technology, infrastructure, and vehicle development the largest in the region’s history. In 2023, Stellantis sold over 878,000 vehicles in South America, securing a 31% market share. Brazil, Argentina, and Chile are among the largest consumers, with Brazil alone accounting for over 31% of the company’s sales in the region.

This investment is not Stellantis’ first in South America but one of the most strategic. The automaker is deeply involved in enhancing the local automotive supply chain, advancing research and development, and creating new bio-hybrid technologies.

These cutting-edge technologies, which combine ethanol and electric power, are being developed at Stellantis’ manufacturing plant in Betim, Brazil. This facility has become a global hub for bio-hybrid engine production, positioning South America as a leader in sustainable automotive technology.

Stellantis’ vision extends beyond vehicle production. The company’s goal is to become carbon net-zero by 2038, and its investments in South America’s growing automotive sector are a significant step toward achieving that target.

Stellantis is decarbonising its fleet and helping transform South America into a centre for sustainable vehicle production by focusing on ethanol-powered engines and bio-hybrid technologies. The automaker’s ambitious plan represents a monumental shift in the global automotive landscape, signaling the end of traditional fuel sources and paving the way for a greener future.

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