A TECHNOLOGY firm behind a wonder substance hopes to help deliver next generation industrial greases.

Applied Graphene Materials (AGM) says initial tests show its graphene can work in base oils, which are used to make lubricating fluids and motor oils.

It said the experiments, carried out alongside Belgium’s BFB Oil Research, proved friction and wear on metal surfaces can be reduced by adding low levels of graphene to oils.

Experts say graphene can conduct electricity a million times better than copper, despite being as thin as human hair, and is 200 times stronger than steel.

AGM’s findings come after the company, based at Wilton, near Redcar, experimented on its substance in paints and coatings.

It said those trials showed graphene could potentially increase the scratch resistance and strength of polyurethane coatings, which are used in the automotive and aircraft industries.

Referring to its latest experiments, Jon Mabbitt, chief executive, said: “With our manufacturing process, our growing library of test data, and a strong technical team, we are well placed to help customers apply and exploit graphene in their products.”

Earlier this year, the company, which employs about 30 staff, reported wider financial losses, despite experiencing record demand from customers and rising production in the six months to January 31.

Those successes came against pre-tax losses of £1.9m, up from £1.2m a year ago, with a deficit across earnings before interest, taxes, depreciation, and amortization widening from £820,000 to £1.8m.

However, Mr Mabbitt said the added costs were the result of its push to get a foothold in the market, with cash spent on production and increasing its workforce.

Graphene was isolated by scientists at Manchester University ten years ago, and has since been hailed as a material set to revolutionise manufacturing by helping produce various applications, such as bendable mobile phones and almost unbreakable tennis rackets.