The dispersion, adhesion strength, electrical, and electrochemical properties of LiCoO2 cathodes in lithium-ion batteries with the addition of a new composite binder composed of two acrylic emulsions, poly(butyl acrylate)-based (PBA) and polyacrylonitrile-based (PA) latex in a ratio of 3:7, were evaluated. PBA binder has a low-glass transition temperature of 10°C, which can improve the flexibility of the electrode. This new composite binder has a very good binding ability as same as the typical organic solvent-based binder, poly(vinylidene fluoride). The dispersions of the water-based cathode slurries with the composite binder were measured by analyzing the viscosity and sedimentation behaviors. The results show that the new composite binder can well disperse the LiCoO2. Moreover, using the new composite binder could greatly improve the rate capabilities and the cycle stability of water-based LiCoO2 cathodes.