Upon lithium insertion in the pristine TiO2 anatase phase the theoretical maximum of LiTiO2 can be reached in crystallite sizes less than approximately 10 nm, whereas bulk compositions appear limited to Li(x) approximately 0.6TiO2 at room temperature. Both X-ray absorption spectroscopy (XAS) and ab initio calculations have been applied to probe the electronic structure of the newly formed LiTiO2 phase. These results indicate that a large majority of the Li-2s electrons reside at the Ti-3d(t2g)/4s hybridized site. About 10% of these electrons are transferred to non-localized states which makes this compound a good electronic conductor. Ionic conductivity is probed by nuclear magnetic resonance (NMR) relaxation experiments indicating relatively small hopping rates between the Li-ion sites in LiTiO2. Formation of the poor ionic-conducting LiTiO2 at the surface of the particles explains why micro-anatase Li(x)TiO2 is not able to reach the theoretical maximum capacity at room temperature, and why this theoretical maximum capacity reached in nano-sized materials cannot be (dis)charged at high rates.