Layered Li(Co0.5Ni0.5)1−yFeyO2 (0.0 ≤ y ≤ 0.25) oxides were prepared by citric-acid assisted sol–gel method. Elemental and structural properties were investigated by energy dispersive X-ray spectroscopy (EDX), X-ray diffraction (XRD), Raman scattering (RS) and Mössbauer spectroscopy, and magnetometry. EDX images show a homogeneous distribution of Fe ions. XRD and RS spectroscopy reveal that the materials crystallize as a LiNiO2 LiCoO2 LiFeO2 solid solution with the typical rhombohedral α-NaFeO2 structure (R 3 ¯ m S.G.) up to y = 0.2 at which composition a secondary phase was observed. For y > 0.2 the XRD results show the appearance of the α-LiFeO2 phase with the cubic structure (Fm3m S.G.). The degree of cation mixing investigated by XRD analysis and magnetic measurements is z < 0.04, for y < 0.2. Electrochemical tests of Li(Co0.5Ni0.5)1−yFeyO2 (0.0 ≤ y ≤ 0.1) oxides in lithium cells show the influence of iron substitution. The best results have been obtained for the composition y(Fe) = 0.05, where the electrical conductivity is maximum. A specific capacity 32 mAh g−1 is maintained at 8C rate.