In Phase II Spytek will implement improvements to the J301 and J302 series of Spytek engines, in terms of improved low-cost materials, coatings and design practices, and their utilization in the various engine designs. The key goal is to produce a DOD grade class III vehicle propulsion system at low costs, as a viable alternative to low-cost hobby type RC engines presently sued on some vehicles. Spytek will incorporate low cost, low skilled labor use, manufacturing methods and confirm their viability in the use of producing high and low volumes of either engine type. Design revisions, combination of parts will be incorporated from both cost and volume production perspectives. Emphasis will be made on automating the processes of engine manufacture and simplifying engine assembly, and overhaul, to limit the use of high skilled labor. This is in support of powering Air Launched Effects (ALE) and unmanned aerial systems (UAS) for ease of manufacture and increased operational capability. In this effort the J301 will incorporate an advanced recuperator.