More than £660,000 is being invested in research and development to help safeguard the long-term future of the steel industry in Wales.
The Welsh Government said the grant is being made available to Tata Steel to develop higher-strength products at its sites in Port Talbot and Llanwern.
The aim is to place Wales in the best position to meet demand for advanced steel goods for the automotive and construction sectors.
Ken Skates, Economy Secretary in the Welsh Government, said: "The Welsh Government has been working to support Wales' steel workers and this latest offer demonstrates our continued commitment to safeguarding a long-term future for the steel industry in Wales.
"Increasing the level of steel-related research and development taking place in Wales is critical if we are to meet the demands of the market and secure the long-term future of Welsh steel."