The U.S. Air Force is seeking to reduce the cost of solid rocket motors, particularly large units. Cost savings are possible both in processing techniques and in materials. In the Phase I SBIR program, GTA utilized its pilot plant processing equipment to demonstrate the feasibility of the concept of continuous processing. GTA proposes in Phase II to continue this work focusing on utilization of lower cost binder materials, in particular thermoplastic elastomers (TPE). GTA processing techniques employ new conditions wherein liquids and solids can be intimately blended and mixed without chemical reaction or physical interaction. Utilizing these processes, binder systems can be used which could not be processed with conventional techniques. The proposed Phase II program will investigate new lower cost binders, such as TPE's which, through new processing techniques could meet the desired U.S. Air Force performance specifications.