More than $175 million in federal grants over the next three to five years will go toward developing more technologically advanced and fuel-efficient vehicles, Energy Secretary Steven Chu announced Wednesday.
The grants target research in fuels and lubricants, reducing vehicle weight, new prototype materials, advanced electronics, engine technology, tire efficiency and advanced testing.
The funds will support 40 projects in 15 different states.
“Investments in the next generation of autos will strengthen our economy and lead to a more fuel-efficient, clean energy future,” Chu said.
The announcement came a day after the Obama administration announced new fuel efficiency standards for work trucks, buses and other heavy duty vehicles.
Last month, the White House brokered an agreement with 13 leading auto manufacturers to increase fuel economy in cars and light-duty trucks to 54.5 miles per gallon.