An improved cathode material for nonaqueous electrolyte lithium electrochemical cell is described. The preferred active material is .epsilon.-phase silver vanadium oxide (Ag.sub.2V.sub.4O.sub.11) coated with a protective layer of a metal oxide, preferably .gamma.-phase SVO (Ag.sub.1.2V.sub.3O.sub.1.8). The SVO core provides high capacity and rate capability while the protective coating reduces reactivity of the active particles with electrolyte to improve the long-term stability of the cathode.