The main goal of the present project is to improve fundamental understanding of materials properties based on principles of quantum mechanics, and to provide this expertise to applied materials science, adjacent scientific disciplines, and to the industry. Therefore, the expected scientific output is of multidisciplinary relevance. The aim of the project is to reveal physics on the atomic level. It is the physics on this level that is to a large extend responsible for the novel properties of modern materials and vital processes taking place in real condensed matter systems employed by the modern society. The importance of the research we are going to conduct lies in that it should lead to new possibilities in improving materials performance and discovering qualitatively new materials required by a rapid technological progress. Particular subprojects included in the application are the development of advanced first-principles methods, studies of thermodynamics and thermoelectric properties of various elements and alloys, of physical and chemical properties of important fuel-cell and thermoelectric related materials, rare-earth and transition-metal systems.