Current Li-ion technology offers the highest energy density of any rechargeable battery system. Unfortunately, Li-ion systems still do not meet the energy density and cost goals for emerging EV markets including PHEVs. A key barrier is the energy density and power capability of the cathode electrode. Under this Phase I project a new high capacity and high rate capable cathode material will be developed and unique cell designs will be developed to take advantage of its unique properties. If successful, the technology developed under this SBIR project will lead to the production of a large product line of safe, low cost very high capacity Li-ion battery cells and systems. These cells will meet the needs of a wide range of advanced applications in the automotive, telecommunications and military supply industries. Some of these applications include electric and hybrid electric vehicles including automobiles, scooters and bikes, satellites, stationary backup power, and portable power applications like cell phones, computers and PDAs for both civilian and military use.