Method for producing encapsulated nanoparticles and carbon nanotubes using catalytic disproportionation of carbon monoxide

A method for the production of carbon encapsulated metal particles and carbon nanotubes comprising:

• 1) drying a catalyst of a transition metal, or a compound or alloy thereof, in an inert gas at a temperature and for a period of time sufficient to form a dried catalyst;
• 2) reducing said dried catalyst with hydrogen to form a reduced catalyst;
• 3) contacting said reduced catalyst with an inert gas under conditions effective to reduce the level of residual hydrogen therein to less than about 5.times.10.sup.-4 mol of H.sub.2 equivalent per gram of catalyst, and then
• 4) contacting the catalyst from step (3) with a gas mixture containing carbon monoxide, and an amount of available molecular hydrogen which is insufficient to cause formation of graphite plane edges through capping, at a temperature in the range of from 300.degree.-1000.degree. C., to thereby form carbon nanotubes and metal particles of said catalyst which are carbon encapsulated.