A new type of V2O5/carbon/Nd2O3 composite was prepared by mixing vanadium oxide hydrosol, acetone, carbon, and Nd2O3 powder together. Electrodes made of this were tested at a the high rate of discharge/charge to learn their electrochemical properties. With Nd2O3 added, the composite showed improvements on both discharge capacity and cycle durability discharge capacity, and the rate capability was also elevated. This enhanced rate capability and cycle life were probably caused by the increase in porosity of open pores and the short diffusion distance for lithium ion. (c) 2005 The Electrochemical Society.