The US Government is providing nearly $50 million (£30.2m) for research and development into efficient new vehicle technologies.
The funding will support a wide range of technologies that further cut fuel costs for drivers and help make vehicles more efficient.
This includes light weighing materials, cost-effective batteries, advanced heating, ventilation and air conditioning systems and improved fuels.
US Energy Secretary Ernest Moniz said: “Today, the American auto industry is on the rise, experiencing the best period of growth in more than a decade. The new research and development funding announced today will help support our domestic automakers’ continued growth and make sure that the next generation of advanced technology vehicles are built right here in America.”
The funding includes support for the ‘EV Everywhere Grand Challenge’, a broader initiative launched in March 2012 to make plug-in electric vehicles more affordable and convenient to own and drive than conventional ones within the next 10 years.
The cost to manufacture advanced EV batteries has fallen by 50% over the last four years, according to the Department of Energy.