We review recent developments in the physics of ultracold atomic and molecular gases in optical lattices. Such systems are nearly perfect realisations of various kinds of Hubbard models, and as such may very well serve to mimic condensed matter phenomena. We show how these systems may be employed as quantum simulators to answer some challenging open questions of condensed matter, and even high energy physics. After a short presentation of the models and the methods of treatment of such systems, we discuss in detail, which challenges of condensed matter physics can be addressed with (i) disordered ultracold lattice gases, (ii) frustrated ultracold gases, (iii) spinor lattice gases, (iv) lattice gases in "artificial" magnetic fields, and, last but not least, (v) quantum information processing in lattice gases. For completeness, also some recent progress related to the above topics with trapped cold gases will be discussed.

An ultracold atomic Bose gas in an optical lattice is shown to provide an ideal system for the controlled analysis of disordered Bose lattice gases. This goal may be easily achieved under the current experimental conditions by introducing a pseudorandom potential created by a second additional lattice or, alternatively, by placing a speckle pattern on the main lattice. We show that, for a noncommensurable filling factor, in the strong-interaction limit, a controlled growing of the disorder drives a dynamical transition from superfluid to Bose-glass phase. Similarly, in the weak interaction limit, a dynamical transition from superfluid to Anderson-glass phase may be observed. In both regimes, we show that even very low-intensity disorder-inducing lasers cause large modifications of the superfluid fraction of the system.

We study low temperature properties of a spinless interacting Fermi gas in the trimerized kagomé lattice. The case of two fermions per trimer is described by a quantum spin 1/2 model on the triangular lattice with couplings depending on the bond directions. Using exact diagonalizations we show that the system exhibits nonstandard properties of a quantum spin-liquid crystal, combining a planar antiferromagnetic order with an exceptionally large number of low-energy excitations.