A vehicle energy recovery system has an axle, a wheel affixed to the axle so as to rotate with a rotation of the axle, a flywheel assembly mounted in or adjacent to the wheel so as to be rotatable independently of the rotation of the axle, a stator positioned in proximity to the flywheel assembly, a brake disk affixed to the axle and extending radially outwardly therefrom, and an energy transfer system cooperative with the brake disk for transferring energy from the brake disk to the flywheel assembly. A pair of calipers are respectively mounted adjacent opposite sides of the brake disk. The energy transfer system can be an induction stator or rotor positioned adjacent to the brake disk.