Ford Motor Co is receiving a $US10 million ($A14.1 million) grant from the US Energy Department to develop plug-in hybrid vehicles.
The funding being announced on Tuesday will help the automaker continue to develop its demonstration fleet of 20 plug-in hybrid vehicles.
The project costs $US20 million ($A28.2 million), so the government is funding half of the program.
Ford is working on a fleet of Escape plug-in hybrids in a partnership with Southern California Edison, the Electric Power Research Institute, Johnson Controls-Saft, and DTE Energy, Michigan's largest utility.
Ford is working on a three-year project to demonstrate the vehicles and understand how they will interact with utilities around the country, a key step in commercialising cars that can be recharged by plugging into a standard wall outlet.
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