Total-energy electronic-structure calculations were performed to explore energetics and electronic structures of a one-dimensional array of C60 and potassium atoms encapsulated in metallic nanotubes. We find that the electron states of the potassium intercalated peapods depend on the number of potassium atoms intercalated. Intercalation induces substantial hybridization between pi electron states of C60 and the nanotube. The local density of states around the Fermi level shows that the potassium intercalated C60-peapod is a novel metal whose carriers are distributed on both the C60 and the nanotube.
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