MEMORANDUM OF UNDERSTANDING

EXHIBIT 10.15

                           MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (the  "Memorandum")  constitutes a statement of

the mutual understanding between the following parties:

ALTAIR  NANOMATERIALS,  INC having an office at 204 Edison Way,  Reno,  NV 89502

(hereinafter referred to as "Altair"); and

Hosokawa Nano Particle  Technology  Center (USA) an  unincorporated  division of

Hosokawa Micron International Inc., having an office at 10 Chatham Road, Summit,

NJ 07901 (hereinafter referred to "Hosokawa").

The  parties  are   hereinafter   referred  to  singularly  as  a  "Party,"  and

collectively as the "Parties," as the context requires.

This  Memorandum  describes  certain  efforts to be undertaken by the Parties in

exploring the possibility of their collaboration for the purpose of:

         o    developing and using their combined technical  advantage to secure

              a commercial  position in the developing  technologies and markets

              that utilize nano materials (defined as materials that average 100

              nm or less  in  diameter)  in the  electrodes  of  electrochemical

              devices including batteries, capacitors, and supercapacitors, and,

         o    strengthening  the technical and market position of the Parties by

              combining  technological  and  financial  strengths,  and existing

              manufacturing  capabilities  as they apply to enhanced  nano sized

              anode and cathode  materials made or proposed to be made by Altair

              and treated or coated by Hosokawa and,

         o    exploring  and   utilizing   funding  of   development   work  and

              commercialization   activities  including  erection  of  dedicated

              facilities  to supply  commercial  quantities of treated or coated

              nano sized cathode and anode materials for use in  electrochemical

              devices.

Except for the initial  test of the combined  technologies  as described in item

one (1) below,  neither  party shall be bound or  restricted by any provision of

this  Memorandum  with  respect  to  the  negotiation  of a  further  definitive

agreement, nor shall either Party have any obligation to enter into a definitive

agreement  with respect to the matters  described  herein.  Binding  commitments

between  the  Parties  with  respect to  licenses  or  commercial  relationships

described in sections 6 and 7 will result only from the execution of one or more

binding,  definitive agreements mutually acceptable to both parties, and will be

subject  to the  conditions  expressed  therein,  as well  as the due  diligence

investigation  of  each  Party,  the  receipt  of  all  necessary  governmental,

regulatory and financing  approvals,  and compliance with the legal requirements

of applicable jurisdictions.

Altair owns machinery and equipment with  capability and  intellectual  property

including   patents   and  patent   applications   to   manufacture   nano-sized

electrochemical  cathode  and anode  materials  including,  but not  limited to,

LiTi4O12,  LiMnO2,  and LiCoO2.  Hosokawa  owns  machinery  and  equipment  with

capability and intellectual  property to apply particle coatings including,  but

not  limited  to,   conductive   graphite   and  carbon   black  to   nano-sized

electrochemical cathode and anode materials of the types manufactured by Altair.

Based on the foregoing, the Parties acknowledge and agree as follows:

         1. The  Parties  agree to fund a test of the  performance  of  Altair's

nano-sized  Li4Ti5O12  coated by Hosokawa at two density  levels with  acetylene

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black (to be provided by Altair) in Rutgers University's  proprietary assymetric

hybrid  supercapacitor  prototype.  The  initial  screening  test  of  just  two

densities  (which will be  performed  by Rutgers  University  ("Rutgers")  at no

charge  to the  Parties)  will be  followed  by an  optimization  study  using 3

commercial  nano-sized  carbon  sources and applied at two density  levels and 3

weight  percentages  of carbon  coating  (hereafter  referred to as the "Initial

Study") provided

         a.        the Parties  mutually agree that the performance of the first

                   two carbon coated  materials  sufficiently