In this paper technological aspects of a synthesis of phospho-olivine LiFePO4 based composite cathode materials for lithium batteries are presented. An effective synthesis route yielding a highly conductive composite cathode material was developed. The structural, electrical and electrochemical properties of these materials were investigated. It was shown that the enhanced conductivity of the cathode material is due to the presence of a thin layer of the reduced material which has metallic properties, which is formed on the grain surfaces of the phospho-olivine. We propose a synthesis route yielding LiFePO4/Fe2P composite material.