The spherically averaged pseudopotential (SAPS) model for treating the electronic structure and the energetics of a cluster of atoms is extended to allow use of first principles norm-conserving pseudopotentials including some nonlocality. The main theoretical development is the spherical average about the chosen cluster centre of an s-wave projection operator associated with an off-centre ion which results in an additional radially nonlocal term in the radial Schrödinger equation. However, much of the simplicity of the SAPS model is preserved. The approach is used to study the electronic structure and the energetics of Li 2@C 60. Self-consistent electron densities are obtained for the spherically averaged pseudopotentials corresponding to this endohedral complex and its component Li 2 and C 60 parts. The atoms are then allowed to relax their positions to minimize the total energy. In the cases of Li 2 and C 60 considerable improvement is achieved over calculations using the SAPS model with local pseudopotentials. Two minimum energy configurations are found for the Li 2 encapsulated inside a C 60 molecule. That with the longer LiLi bond length is the higher in energy by 0.88 eV and is marked by almost complete charge transfer from the Li 2 to the C 60 cage. The other more stable isomer shows little charge transfer but there is a noticeable build up of charge between the Li 2 and the C 60.
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