U.S. Rep. Fred Upton, R-St. Joseph, announced the funding Monday while visiting the headquarters of Eaton's Vehicle Group in Galesburg.
Upton said the military is interested in hybrid technology because it saves on fuel costs and could increase safety by making vehicles lighter.
"As taxpayers, we want the most fuel-efficient vehicles for our troops," Upton said.
The Galesburg site houses about 600 Eaton employees. The military project could lead to commercial applications of the hybrid technology, which could spark more hiring at Eaton.
"It's not only advancing the technology, but it's jobs here in Michigan," Upton said.
Eaton recently announced it was partnering with Western Michigan University to jointly staff a testing lab for commercial and military hybrid systems and components. The lab will be located in Kalamazoo at the university's Center for Advanced Vehicle Design and Simulation.
Eaton is hiring 10 engineers who will work at the lab alongside students.
While at Eaton, Upton said he expected federal energy legislation to lack enough support to pass the Senate.
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