An improved cathode material for nonaqueous electrolyte lithium electrochemical cell is described. The preferred active material is ε-phase silver vanadium oxide (Ag2V4O11) coated with a protective layer of a metal oxide, preferably γ-phase SVO (Ag1.2V3O1.8). 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.