TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Process: The ionic liquid catalyst is prepared by contacting the catalyst precursor with aluminum trichloride (AlCl3) in an AlCl3/catalyst precursor molar ratio of 2. In the process, a portion of the catalytic composition is fed in-process through a regeneration zone, and the catalyst precursor is added to the catalytic composition in the regeneration zone at a temperature equal to or greater than the melting point of the hydrophobic material. The catalyst precursor is added to the catalytic composition under regeneration conditions to provide an AlCl3/catalyst precursor molar ratio of 2. The alkylation conditions include a temperature of 50-100 degrees C, a pressure of 300-2500 kPa, an isoparaffin to olefin molar ratio of 2-8, and a residence time of 1 minute to 1 hour. The catalyst precursor is pelletized to form pellets of the catalyst precursor, and the pellets are coated with the hydrophobic material to provide moisture resistant granules of the catalyst precursor. The catalyst precursor is added to the catalytic composition under conditions sufficient to at least partially remove the hydrophobic coating from the catalyst precursor. The alkylation process comprises: separating a hydrocarbon phase containing the alkylate from an ionic liquid phase comprising partially spent catalyst; regenerating a portion of the partially spent catalyst in a regeneration zone to provide a reactivated catalytic composition including an excess of a metal halide; and adding the catalyst precursor to the reactivated catalytic composition sufficient to remove at least a portion of the excess metal halide by forming fresh ionic liquid catalyst, which is coated with a hydrophobic material prior to the addition of the catalyst precursor to the reactivated catalytic composition, and the catalyst precursor is added under regeneration conditions sufficient to remove the hydrophobic material from the catalyst precursor. Preferred Components: The catalytic composition comprises an acidic ionic liquid catalyst. The catalyst precursor is salts of formulae (A) (B), (N+(-R3)(-R4)(-R5)(-H)(X-)) (C) and (N+(-R3)(-R4)(-R5)(-R6)(X-)) (D). The catalytic composition further comprises at least one 2-6C alkyl halide, and a hydrochloric acid co-catalyst. The catalyst precursor comprises wax coated 1-butylpyridinium chloride.X = halide;R, R1, R2 = H, methyl, ethyl, propyl, butyl, pentyl or hexyl; andR3-R6 = methyl, ethyl, propyl, butyl, pentyl or hexyl.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Components: The isoparaffin is isobutane and/or isopentanes; and the olefin is ethylene, propylene, butylenes and/or pentenes. The hydrophobic material comprises a wax having a melting point of 40-95 degrees C. The hydrophobic material comprises a 16-30C paraffin wax. The catalytic composition comprises 1-butylpyridinium heptachloroaluminate. The hydrophobic coating has a melting point of less than 100 degrees C. The hydrophobic coating is soluble in 3-15C hydrocarbons.