An article from CNET indicates that MIT has just opened the Institute for Soldier Nanotechnologies in conjunction with the US Army.

According to the home page, their charter is "to pursue a long-range vision for how technology can make soldiers less vulnerable to enemy and environmental threats. The ultimate goal is to create a 21st century battlesuit that combines high-tech capabilities with light weight and comfort."

The institute was funded by a $50M grant from the Army in 2002, with additional partner funding adding up to at least $40M by DuPont, Raytheon, and seven other companies.