*** 9561217 Wang This Small Business Innovation Research Phase I project will develop and demonstrate a process to synthesis open-ended buckytubes and intercalate them with lithium to be used as new electrode materials for lithium batteries. All experiments reported to date have shown that buckytubes produced in inert gas arcs are capped at the ends. The firm has demonstrated that sharp, open-ended nanotubes with empty interiors can be synthesized in a hydrogen arc discharge. The availability of open-ended buckytubes makes it possible to fill the tubes and fabricate completely new one-dimensional materials with unprecedented, novel properties such as conducting or semiconducting "quantum wires", ultra-short wavelength optical waveguides, nanofibers with the highest tensile strength etc. In this Phase I program, the process for synthesis of open-ended buckytubes will be perfected through a systematic investigation, and the open-ended buckytubes with strong electron affinity will be intercalated with lithium to produce electrode materials with a higher ratio of carbon to lithium than can be obtained with current graphite. This could be extremely important to high performance, low cost, and very safe rechargeable lithium supplies and storage systems. ***