A Pentagon report to Congress said a team led by General Electric and Rolls-Royce developed a pressure turbine vane made from ceramics that gives the F-35 more thrust and better fuel economy, Defense News reports.
The project could decrease production and maintenance costs by more than $3 billion for the F135 and F136 engine variants for the joint strike fighter.
U.S. lawmakers are pressing for the F136, an alternate engine made by GE and Rolls-Royce, inserting $485 million into the 2011 defense budget for the program.
But U.S. Defense Secretary Robert Gates told lawmakers the F136 "does not meet performance standards" for the F-35 and U.S. President Barack Obama said he would veto any defense measure that included funds for the F136.
The bill, however, contains a repeal of the "Don't Ask, Don't Tell" policy regarding homosexuals serving openly in the military.