Hybrid composites of polypyrrole (PPy) and silver vanadium oxide (SVO) used for lithium primary batteries were chemically synthesized by an oxidative polymerization of pyrrole monomer on the SVO surface in an acidic medium. The composite electrode exhibited higher discharge capacity and better rate capability as compared with the pristine SVO electrode. The improvement in electrochemical performance of the composite electrode was due to PPy which accommodates lithium ions and also enhances the SVO utilization. Chronoamperometric and ac-impedance measurements indicated that lithium intercalation proceeds under the mixed control by interfacial charge transfer and diffusion. The enhanced SVO utilization in the composite electrode results from a facilitated kinetics of interfacial charge transfer in the presence of PPy.