U.S. Energy Department Grants $30M to Detroit Automakers For Plug in Research

SEE ALSO:Ford exec says U.S. Government must invest in technology to develop plug-in vehicles.

SEE ALSO: More on plug-ins

Washington DC June 13, 2008; The AIADA newsletter reported that the U.S. Energy Department on Thursday announced $30 million in funding over three years for a trio of plug-in vehicle projects – a fraction of the financial support automakers have sought, but a step they praised nonetheless.

Detroit's automakers will use the money for plug-in vehicle test fleets and to accelerate mass production of battery technologies. Each of the joint projects will receive about $10 million, the energy department said.

"We believe government has a significant role to play," Troy Clarke, GM's North American president told the Detroit News. "Our nation must fund a major effort to strengthen domestic advanced battery capabilities." There is concern among automakers and Congress that the U.S. could replace reliance on imported oil with reliance on imported batteries, since most battery production is in Asia.

The Energy Department plans to fund a second round of projects next year if Congress approves the money.

For more on how tax dollars are subsidizing Detroit's research, CLICK HERE.