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Hi,
This is called a serial hybrid: the Volt, the Aptera 2h, the Capstone S-Max, the older Mini hybrid, and others -- including diesel/electric train locomotives -- all use this set up.
Yes, the engine is run at it's peak efficiency, and so it can be much smaller than if the ICE was pushing the vehicle. There is no transmission or clutch; it is mechanically very simple.
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