The projects will focus on developing materials for two key areas – carbon fiber composites & advanced steel besides advanced alloy development for automotive and heavy-duty engines.

Energy Secretary Steven Chu said, "With strong, lightweight materials we have an opportunity to dramatically increase vehicle fuel economy, while helping America maintain its competitive edge in automotive design and manufacturing."

Detroit-based United States Automotive Materials Partnership will receive $6m award to develop new modeling tools to advance third-generation high-strength steels while Caterpillar Inc will receive $3.4m award to develop lightweight, high-strength alloys for automotive and heavy duty engine blocks and cylinder heads.

Ford Motors, General Motors, Oak Ridge National Laboratory and Pacific Northwest National Laboratory will be other recipients of the awards under the initiative.