Goal is to develop a Hall cell cathode, which will reduce the specific energy consumption of existing commercial cells by 20 to 25%. Basis of the improvement is the utilization of titanium diboride (TiB/sub 2/), a material that is wetted by molten aluminum, as the cell cathode. This provides a stable cathode surface, thereby allowing the cell to be operated at a smaller anode-cathode distance (ACD). Energy savings arise as a result of reduced resistive losses through the cryolite electrolyte. This phase of the program is comprised of three integrated parts: (1) materials characterization, (2) pilot cell testing, and (3) a full-sized cell demonstration. During this quarter emphasis continued on rebuilding the 15KA pilot cell to accommodate a highly sloped electrode system. TiB/sub 2/ cathode materials were received, and construction of cell components and peripheral equipment was completed.