We report the preparation of a novel nanocomposite architecture of α-LiFeO2-MWCNT based on clusters of α-LiFeO2 nanoparticles incorporated into multiwalled carbon nanotubes (MWCNTs). The composite represents a promising cathode material for lithium-ion batteries. The preparation of the nanocomposite is achieved by combining a molten salt precipitation process and a radio frequency oxygen plasma for the first time. We demonstrate that clusters of α-LiFeO2 nanoparticles incorporated into MWCNTs are capable of delivering a stable and high reversible capacity of 147 mA h g(-1) at 1 C after 100 cycles with the first cycle Coulombic efficiency of ~95%. The rate capability of the composite is significantly improved and its reversible capacity is measured to be 101 mA h g(-1) at a high current rate of 10 C. Both rate capability and cycling stability are not simply a result of introduction of functionalized MWCNTs but most likely originate from the unique composite structure of clusters of α-LiFeO2 nanoparticles integrated into a network of MWCNTs. The excellent electrochemical performance of this new nanocomposite opens up new opportunities in the development of high-performance electrode materials for energy storage application using the radio frequency oxygen plasma technique.