LiNi0.8Mn0.1Co0.1O2 (NMC811) is the most promising cathode material for future Li‐ion batteries (LIBs). However, the bulk and surface structural instabilities retard its commercial success. Surface chemical instability toward exposure to moisture (H2O and CO2) leads to the formation of residual lithium compounds (RLCs: Li2CO3, LiOH) on the surface. The alkaline RLCs form a resistive layer on the surface of NMC811 by undergoing parasitic side reactions with electrolytes. Herein, an “Adverse‐to‐Beneficial” approach is proposed to eliminate RLCs by chemically transforming them into a LixPOy (Li3PO4 and LiPO3) interface. The interface protects the NMC811 surface from moisture attack and unwanted side reactions with electrolytes. It enhances the cycle life by retaining 70% of the initial capacity after 300 cycles at a 0.5C rate and 60% after 500 cycles, even at a 5C rate in a voltage window of 3.0–4.3 V versus Li+/Li. The coexistence of two Li‐conducting phases lowers the voltage polarization of the kinetically sluggish H1 → M phase transition to unlock fast cycling, reduces cationic disorder, improves coulombic efficiency, enhances ion diffusion kinetics, and minimizes particle crack formation after long‐term cycling. Hence, the LixPOy interface yields multifaceted benefits in the storage, processing, and electrochemistry of NMC811.