Olivine compounds LiFePO4 were prepared by the solid state reaction, and the electrochemical properties were studied with the composite cathode of LiFePO4/mesocarbon nanobead. High discharge rate performance can be achieved with the designed composite cathode of LiFePO4/mesocarbon nanobead. According to the experiment results, batteries with the composite cathode deliver discharge capacity of 1087mAh for 18650 type cell at 20C discharge rate at room temperature. The analysis shows that the uniformity of mesocarbon nanobead around LiFePO4 can supply enough change for electron transporting, which can enhance the rate capability for LiFePO4 cathode lithium ion batteries. It is confirmed that lithium ion batteries with LiFePO4 as cathode are suitable to electric vehicle application.