Lithium‐rich, Mn‐based layered oxides Li2MnO3‐LiMO2 (M=Ni, Co) have been considered as promising cathode candidates owing to their high capacity. However, the resources shortage and high price of cobalt make it imperious to substitute cobalt with other high‐abundance elements. Here, we synthesized a low‐cost, cobalt‐free, Fe‐substituted oxide material, Li(Li0.16Ni0.19Fe0.18Mn0.46)O2. It exhibited a high reversible capacity of 169.2 mAh g−1 after 100 cycles and maintained an extraordinarily high discharge potential during cycling. X‐ray photoelectron spectroscopy and DFT calculations revealed that super iron FeIV exists in the delithiated state, and oxygen participates in the redox reaction in addition to the Ni2+/Ni4+ and Fe3+/Fe4+ redox couples. The anionic oxidation preferentially occurred on oxygen with a Li−O−Li configuration and with oxidized Fe and Ni coordination.