The new centre will work closely with other research centres and companies. It will help keep European science and business at the cutting edge when it comes to turning graphene's potential into new products and new jobs.
The funding will come for the EUs European Regional Development Fund (ERDF).
The European Commissioner for Regional Policy Johannes Hahn said: "I am very pleased that European investments will enable the establishment of the National Graphene Institute. As a former Science Minister I am well aware of the importance of supporting cutting edge research and providing the means for that to be commercialized. This is good news for the North West of England in terms of jobs but it also will ensure that Europe as a whole remains at the forefront of research into graphene: giving EU businesses a valuable opportunity to use the vast potential of this material. Supporting these kinds of initiatives is just what our modern European Regional Policy should and will be doing more of in the future."
The project should create around 100 jobs initially, with many thousands more in the North West and elsewhere in the UK expected over the long-term.
The EU will finance £23 million out of a total investment of £61 million, as part of the North West England Regional competitiveness and employment programme.