The completed Phase I work was directed at the application of nanotechnology to graphite/epoxy composites. A novel approach to the application of the nanotubes onto the carbon fiber surface was investigated. As a result, a very significant increase in compressive strength of 120% was attained, compared with 20% reported in the literature. The Phase II builds on the success of the Phase I. It will address the key issues of scale-up, reproducibility and component fabrication. The batch fiber coating process employed in the Phase I will be replaced with a continuous fiber coating process. Manual pre-pregging of the Phase I will be replaced with a continuous pre-pregging process. Specific CEV type composite applications will be identified. Subsequently, a cost/benefit ratio for CEV will be provided.