The money is being handed to academics to look at the links between genetics and events in teenagers' lives to see how their mental health is being affected.
The aim is to quickly identify issues such as depression, anxiety, self-harm and eating disorders.
Crucial to the research is better understanding of how teenagers' brains react to challenging events and issues at home, school and the wider world, which can trigger mental health problems.
"Academics will look at external tensions and genetics to ensure mental health problems are being treated as effectively as possible at this crucial age, while the brain is still developing," said the Department for Business, Energy and Industrial Strategy, which is funding the move.
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