We have synthesized LiMn1.5Ni0.4Cr0.1O4 cathode material for high energy density Li ion rechargeable batteries using sol–gel method. The synthesized materials were characterized using X-ray diffraction (XRD), X-ray photoelectron spectroscopy, cyclic voltammetry and charge–discharge characteristics. It was found that phase pure materials were obtained an annealing temperature of 875°C for 15h. The maximum discharge capacity at a constant charge–discharge current rate 1C, 0.5C, and 0.2C were found to be about 99mAhg−1, 110mAhg−1, and 131mAhg−1, respectively. The capacity retentions after 50 charge–discharge cycles were found to be about 99%, 97%, and 97.3% at discharge current rates of 0.2C, 0.5C, and 1C. The stable electrochemical behavior of the above cathode material even at high C rate, showed that it could be used for high energy density and high rate capability Li ion rechargeable batteries.