"We are honored to have been selected by the Energy Department for this initiative to push the boundaries of electrical steel technology," AK Steel chief executive Roger Newport said in a statement. 

"Product and process innovation is a hallmark of our company, and we look forward to collaborating with some of the brightest minds in the industry to take electric motor performance to the next level." 

The grant, issued through the U.S. Department of Energy’s Next Generation Electric Machines program, will aid in an effort to develop a more efficient electric motor based on the high-alloy electrical steel. 

AK Steel is collaborating with the Energy Department, Oak Ridge National Laboratory's Power Electronics and Electric Machinery Research Center, and Regal Beloit Corp., a maker of electric motors and motion control products.

Together, they are aiming to design a motor that that is 30% more efficient. 

The AK Steel project is one of 13 that are sharing in US$25 million in funding. The department announced the winning projects in November.