As a cathode material, silver vanadium phosphorous oxide (Ag(2)VO(2)PO(4)) displays several notable electrochemical properties: large capacity, high current capability, and an effective delivery of high current pulses. These cell performance characteristics can be attributed to the presence of silver nanoparticles formed in-situ during the electrochemical reduction of Ag(2)VO(2)PO(4). Specifically, changes in the composition and structure of Ag(2)VO(2)PO(4) with reduction, especially the formation of silver nanoparticles, are detailed to rationalize a 15,000 fold increase in conductivity with initial discharge, which can be related to the power characteristics associated with Ag(2)VO(2)PO(4) cathodes in primary lithium batteries.