Visiting an area hard-hit by the recession, President Barack Obama called for new energy-sector innovations to plant the seeds of an economic recovery, and urged Americans stung by rising joblessness not to lose hope.

"This country wasn't built just by griping and complaining, it was built by hard work and taking risks, and that's what we have to do today," Obama said in a speech in Wakarusa, Ind.

"This is a rare moment in which we're called upon to rise above the failures of the past, this is a chance to restore that spirit of optimism and opportunity which has always been central to our success."

Obama's two-hour trip to Elkhart County, the downturn-battered RV-manufacturing hub he also visited in February, served a dual purpose - to counter what he called "misinformation" on the economic stimulus package and unveil $2.4 billion in grants to makers of next-generation car batteries and parts.

Navistar International Corp. (NAV), where Obama was speaking, received a $39 million grant to make electric trucks, one of seven projects in the Hoosier State that together will get more than $400 million in grants. The White House says that will save or create "thousands" of jobs in a state where joblessness is well above the national average.

The economic slump has been devastating in Elkhart County, where unemployment is a state-high 16.8%.

"This area's been hit with a perfect storm of economic troubles," Obama said, calling the area's surge in unemployment "astonishing."

"Over the last few decades, you've born the brunt of a steadily weakening of American manufacturing in the face of global competition. You've felt the impact of the struggles of the American auto industry and the repercussions that have hit the Midwest especially hard," he said. "And you're living every day with the consequences of this recession and the financial meltdown."

The White House in recent days has pointed to signs of stabilization in the economy, but warned that the long-awaited recovery still hasn't arrived, with unemployment expected to continue to rise. The July payrolls report, to be released Friday, is expected to show another increase in the jobless rate, already at a 26-year high of 9.5%.

Obama said the Recovery Act is helping create jobs in Elkhart and elsewhere by investing in innovative technologies.

But Republicans say the rising jobless rate is evidence the $787 billion stimulus package isn't working.

Obama's remarks in Elkhart spearheaded a blitz by the administration, with officials spreading throughout the country to tout the new grants and soothe worries about the broader economy.

In Detroit, Vice President Joe Biden announced more than $1 billion in grants to Michigan-based companies and universities, including A123 Systems Inc. and Johnson Controls Inc. (JCI), which received a total of around $550 million. The Detroit Three auto makers will get more than $400 million to manufacture advanced hybrid and electric vehicles, as well as batteries and electric drive components.

Energy Secretary Steven Chu and EPA Administrator Lisa Jackson travelled to North Carolina and Florida, respectively, to unveil similar grant-winning projects. Other companies receiving the government cash include Ener1 Inc. (HEV), Celgard, Saft America Inc., East Penn Manufacturing Co., Smith Electric.

The administration hopes developing a domestic electric-vehicle industry can help create U.S. jobs and reduce demand for oil. Hybrid vehicles currently produced in the U.S. rely on batteries made by foreign companies.

"For too long we failed to invest in this kind of innovative work even as countries like China and Japan were racing ahead," Obama said.

"I want the cars of the future and the technologies that power them to be developed and deployed right here, in America. And that's just the beginning."

-By Henry J. Pulizzi and Siobhan Hughes, Dow Jones Newswires; 202-862-9256; henry.pulizzi@dowjones.com