The five-floor National Graphene Institute is set to open in 2015, creating 100 jobs
Safer condoms will be one of the first products developed at the new National Graphene Institute in Manchester.
The Bill and Melinda Gates Foundation has awarded scientists $100,000 (£60,000) to create stronger, thinner condoms from the new "wonder material".
The substance will be mixed with latex to produce a material which will encourage use by "enhancing sensation".
Graphene, the thinnest, strongest material known, was first isolated at the University of Manchester in 2004. It has more often been linked to potentially revolutionising products such as smartphones and broadband.
Its discovery won Manchester-based scientists Sir Andre Geim and Sir Kostya Novoselov the Nobel Prize for Physics in 2010.