On Thursday, January 17, the U.S. Department of Energy announced $30 million worth of matching grants to aid in the development of plug-in hybrids (PHEVs).

The money will be available for projects that concentrate on improving the performance of batteries for PHEVs enabling an operating range of 40 miles per charge.

Additionally the funds will help to remove what the Department termed "critical barriers" to the cost-competitiveness of such vehicles, which the DOE hopes to see resolved by 2014 so commercially viable PHEVs are in the hands of consumers by 2017.

In a news release regarding the program the department said, "Selected projects will place PHEVs in small, geographically diverse fleets in order to collect operational data that will be used in evaluate and demonstrate the operational and economic viability of PHEVs in the marketplace."

Beginning this year, the government will put $7 million toward the program with $23 million distributed over 2009 and 2010. As many as four separate research projects will receive the grant money.

Additionally, the Energy Department will form an automotive research and development alliance to look at lighter materials, electrical and electronic thermal management, engine combustion, and emission after-treatment.

Officially titled the U.S. Automotive Partnership for Advancing Research and Development, the alliance will operate from a facility in suburban Detroit.