Layered transition metal oxides such as LiNiCo AlO (NCA) are highly desirable battery electrodes. However, these materials suffer from thermal runaway caused by deleterious oxygen loss and surface phase transitions when in highly overcharged and overheated conditions, prompting serious safety concerns. Using in situ environmental transmission electron microscopy techniques, we demonstrate that surface oxygen loss and structural changes in the highly overcharged NCA particles are suppressed by exposing them to an oxygen-rich environment. The onset temperature for the loss of oxygen from the electrode particle is delayed to 350 °C at oxygen gas overpressure of 400 mTorr. Similar heating of the particles in a reducing hydrogen gas demonstrated a quick onset of oxygen loss at 150 °C and rapid surface degradation of the particles. The results reported here illustrate the fundamental mechanism governing the failure processes of electrode particles and highlight possible strategies to circumvent such issues.