Mixed transition-metal oxide Ni0.79Co0.2Zn0.01O (NCZ) powders have been prepared by the modified Pechini method and studied as cathode for intermediate-temperature solid oxide fuel cells (IT-SOFCs). The Ni-Ce0.8Sm0.2O1.9(SDC)|SDC|SDC-NCZ single cell achieves 326 mW cm−2 at 600 °C. The output power has been further improved by partial substituting Li for Ni at Ni sites. The Ni-SDC|SDC|SDC-Li0.2Ni0.79Co0.2Zn0.01O2 (L2NCZ) cell with the SDC film of 30 μm in thickness shows maximum power outputs of 1.32, 0.98 and 0.62 W cm−2 at 650, 600 and 550 °C, respectively. The impedance measurements at open circuit conditions show that the overall electrode polarization resistances is 0.033, 0.112, 0.351 Ω cm2 at 650, 600 and 550 °C, respectively. The primary results indicate a new family of potential cathode material compatible with the SDC electrolyte for IT-SOFCs.