A water-soluble conductive composite binder consisting of carboxymethyl chitosan (CCTS) as a binder and poly(3,4-ethylenedioxythiophene):poly(styrenesulfonate) (PEDOT:PSS) as a conduction-promoting agent is reported for the LiFePO4 (LFP) cathode in Li-ion batteries. The introduction of conductive PEDOT:PSS as a conductive composite binder facilitates the formation of homogeneous and continuous conducting bridges throughout the electrode and raises the compaction density of the electrode sheet by decreasing the amounts of the commonly used conducting agent of acetylene black. The optimized replacement ratios of acetylene black with PEDOT:PSS (acetylene black/PEDOT:PSS = 1:1, by weight) are obtained by measuring electrical conductivity, peel strength and compaction density of the electrode sheets. The LFP half-cell with the optimized conductive binder exhibits better cycling and rate performance and more favorable electrochemical kinetics than that using only acetylene black conducting agent. The pilot application of PEDOT:PSS/CCTS binder in 10 Ah CCTS-LFP prismatic cell exhibits a comparable cycling performance, retaining 89.7% of capacity at 1 C/2 C (charge/discharge) rate as compared with 90% for commercial PVDF-LFP over 1000 cycles, and better rate capability than that of commercial PVDF-LFP, retaining 98% capacity of 1 C at 7 C rate as compared with 95.4% for PVDF-LFP.