This paper reports a new approach to develop functional solid oxide fuel cells (SOFC) electrolytes based on nanotechnology and two-phase nanocomposite approaches using non-oxygen ion or proton conductors, e.g., lithium aluminate-lithium sodium carbonate, with great freedom in material design and development. Benefited by nanotechnology and nanocomposite technology, the lithium aluminate-lithium sodium carbonate two-phase composite electrolytes can significantly enhance the material conductivity and fuel cell performance at low temperatures, such as 300 degrees C-600 degrees C compared to non-nano scale materials. The conductivity mechanism and fuel cell functions are discussed to be benefited by the interfacial behavior between the two constituent phases in nano-scale effects, where oxygen ion and proton conductivity can be created, although there are no intrinsic mobile oxygen ions and protons. It presents a new scientific approach to design and develop fuel cell materials in breaking the structural limitations by using non-ionic conductors on the desired ions i.e., proton and oxygen ions, and creating high proton and oxygen ion conductors through interfaces and interfacial mechanism.