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Solid state materials capable of storing hydrogen with high gravimetric (9 wt %) and volumetric density (70 g/L) are critical for the success of a new hydrogen economy. In addition, an ideal storage system should be able to operate under ambient thermodynamic conditions and exhibit fast hydrogen sorption kinetics. No materials are known that meet all these requirements. While recent theoretical efforts showed some promise for transition-metal-coated carbon fullerenes, later studies demonstrated that these metal atoms prefer to cluster on the fullerene surface, thus reducing greatly the weight percentage of stored hydrogen. Using density functional theory we show that Li-coated fullerenes do not suffer from this constraint. In particular, we find that an isolated Li₁₂C₆₀ cluster where Li atoms are capped onto the pentagonal faces of the fullerene not only is very stable but also can store up to 120 hydrogen atoms in …