Uniformly distributed nanoparticles of LiCoO2 have been synthesized through the simple sol-gel method in presence of neutral surfactant (Tween-80). The powders were characterized by X-ray diffractometry, transmission electron microscopy and electrochemical method including charge-discharge cycling performance. The powder calcined at a temperature of 900 degrees C for 5 h shows pure phase layered LiCoO2. The results show that the particle size is reduced in presence of surfactant as compared to normal sol-gel method. Also, the sample prepared in presence of surfactant and calcined at 900 degrees C for 5 h shows the highest initial discharge capacity (106 mAh g(-1)) with good cycling stability as compared to the sample prepared without surfactant which shows the specific discharge capacity of 50 mAh g(-1). (C) 2007 Elsevier Ltd. All rights reserved.