Chrysler Group has been selected for a U.S. Department of Energy (DOE) grant of up to $48 million as part of a $2.4 billion American Recovery and Reinvestment Act DOE Vehicle Electrification program. Chrysler Group is planning to build a total of 140 Ram Plug-in Hybrid Electric Vehicles (PHEVs) for a three-year demonstration project that includes various geographic and climatic locations across the United States.

The Ram PHEV features Chrysler Group's 5.7-liter HEMI V-8 with a two mode hybrid transmission and a 12KwHr lithium ion battery. The vehicle is capable of up to 20 miles of zero-emission, pure-electric range without the need for gasoline. An overall fuel economy improvement more than 65 percent is expected for average drive cycles. Chrysler Group has partnered with Electrovaya Inc. to supply the advanced lithium Ion batteries for the Ram PHEV test fleet.

The DOE grant will expedite the development of vehicle-electrification technology. More than 21 Chrysler Group partners across the U.S., including utility companies, government agencies and universities, will independently test the Ram PHEV and provide data.

In 2008, Chrysler Group announced the company's intention to bring a Ram Hybrid Electric Vehicle (HEV) to market. After closely evaluating the response to hybrid pickups in the marketplace, the company has decided to cancel development work on the 2011 Ram HEV.