The Materials Processing Institute (MPI) was awarded £22 million in the Budget earlier this month to deliver a five-year R&D programme to revolutionise the steel and metals sector.

Acknowledged as the UK’s innovation centre for steel and metals, the Teesside-based MPI will focus on increasingproductivity and transforming environmental sustainability.

Projects include: carrying out research and innovation into low-carbon, electric and hydrogen-based steel-making — plus scrap recycling and new processes — to allow UK steel to become a sustainable green industry; the development and commercialisation of technologies in SME supply chains, such as robotics and artificial intelligence, to increase productivity and product capability; and developing new technologies for the extraction and recycling of rare metals — such as lithium and cobalt — to support a sustainable, secure and ethical supply chain.

In addition, the programme will provide support to the South Tees Development Corporation and the Tees Valley local industrial strategy.

The MPI (www.mpiuk.com) is an asset of fundamental importance to the Tees Valley economy, and the Chancellor’s announcement supports Tees Valley Mayor Ben Houchen’s plan to bring steel making back to the region early in this decade.

The ‘not for profit’ organisation has worked with global steel and materials industries — including Tata Steel, British Steel and Liberty Steel — to deliver cutting-edge research and innovation in advanced materials, low-carbon energy, the circular economy and digital technologies.

Chris McDonald, the MPI’s CEO, said: “Steel and metals are foundation industries essential for Britain’s manufacturing success and sovereign capability.

"Innovation is vital to ensure that our country retains a technological lead, improves productivity and enables us to meet carbon reduction targets.

"This investment recognises the world-leading expertise at the Institute to support UK industry and environmental sustainability.”