A method of chemically modifying carbon nanotubes having a diameter less than one micron comprising: contacting the nanotubes with a peroxygen compound selected from the group consisting of organic peroxyacids, inorganic peroxoacids and organic hydroperoxides, or a salt thereof, under oxidation conditions and thereby producing modified carbon nanotubes. Oxidation of the nanotubes increases the degree of dispersion of aggregates of nanotubes and aids in the disassembling of such aggregates. The dispersed nanotubes are used to prepare rigid structures and can be used in electrodes and capacitors.