We have developed a novel nanocomposite material, PEDOT/V 2 O 5 by inserting poly(3,4-ethylene dioxythiophene) PEDOT in V 2 O 5 layers using oxidative polymerization/intercalation in air. A systematic study of the synthesis of the nanocomposites by direct in situ reaction of 3,4-ethylene dioxythiophene (EDOT) with V 2 O 5 fine powder shows that upon intercalation, the interlayer spacing of V 2 O 5 expands in two stages, i.e., first from 4.32 to 13.84 A ˚and further to 19.04 A ˚. The interlayer separation is consistent with the existence of two phases in the PEDOT/V 2 O 5 system corresponding to the intercalation of one and two monolayers of PEDOT, respectively, in the V 2 O 5 framework. The unique properties of the organo-inorganic composites are investigated by electronic conductivity measurements, X-ray diffraction, FTIR spectroscopy, thermogravimetric analysis and SEM. The application potential of these composites as cathode materials in rechargeable lithium batteries is also demonstrated by the electrochemical intercalation of lithium into the PEDOT/V 2 O 5 nanocomposites, where an enhancement in the discharge capacity (240 mA h g 21 ) is observed compared to that (140 mA h g 21 ) observed for V 2 O 5 .