This Small Business Innovation Research Phase I project describes the technical strategy of Blue Sky Batteries, Inc. for the development of unique nanocomposite cathodes for rechargeable lithium batteries. These cathodes will enable commercialization of lithium ion cells which weigh forty times less than conventional lead acid and nickel-metal hydride cells, and three times less than the best lithium-ion cells now on the market. Additionally, these cells will possess theoretical energy densities of 1500 Wh/kg and capacities of 500 Ah/kg. This significant weight reduction and increased storage capacity will result in more compact energy supplies that will compliment, rather than burden, the current trends in electronics miniaturization.