Brazilian manufacturer Fábrica Nacional de Motores (FNM) will produce 1,000 electric trucks for beverage maker Ambev in South America.

FNM will produce 18-ton electric trucks, developed in full collaboration with Brazilian manufacturer Agrale, to be used by Ambev to deliver beverages throughout South America, the company said. The vehicles will be powered by advanced lithium-ion batteries from Octillion Power Systems.

A subsidiary of Anheuser-Busch InBev, Ambev announced that it will deploy the 1,000 electric delivery vehicles by the end of 2021.

Ambev has stated that it wants at least half of its Brazilian fleet to operate on clean energy by 2023, the company said. The brewing company has more than 7,000 trucks in its Brazilian fleet, which are used to distribute beverages across Brazil. 

FNM recently entered into a contract of technical and industrial cooperation with Agrale. As a part of this launch, they are partnering with FNM and Ambev to invest in clean technologies for fleet vehicles.

FNM opened its EV factory inside Agrale’s manufacturing facility in Caxias do Sul city in southeast Brazil, according to the company. This joint effort leverages Agrale’s existing fully integrated, mass-production line for commercial vehicles, with a capacity to produce 150 to 200 trucks per day.

The FNM’s electric drivetrain integration line is being woven seamlessly inside of Agrale’s production line to ensure a fast ramp up. The collaborative effort will produce the FNM model 832, a Class 6 truck with up to 14-ton capacity, and the FNM model 833, a Class 8 truck with an 18-ton payload capacity, the company said. Future plans include electric buses, vans and tractors.

The FNM 833 is being deployed by Ambev. It features Octillion’s 650-volt battery and and Danfoss Editron’s drivetrains. The new truck will be able to travel up to 700 kilometers between charges, the company said. Each of the model FNM 833 electric trucks will represent a reduction of 126,000 kilos of CO2 emitted into the atmosphere per year.

The FNM truck is connected to the Ambev IT system, which delivers real-time vehicle monitoring information. The vehicle is also equipped with new technologies that are focused on safety, including an anti-collision system with artificial intelligence and integrated cameras.