Li-ion batteries are the premier rechargeable energy storage technology and offer a promising future as power sources for various applications. Unfortunately, their performance still falls short of energy density goals in many military and consumer product applications. Although a number of factors within the battery cell contribute to performance shortfalls, the most crucial one relates to how much energy can be stored in the positive and negative electrode materials of the device. In this regard, Electro Energy Inc. reports preliminary results of our effort to develop rechargeable lithium batteries based on nanocomposite positive electrodes fabricated with metal fluorides such as FeF3 and BiF3. They could be coupled with either a Li metal or a lithiated graphite anode to produce practical rechargeable lithium batteries with specific energies exceeding 350 Wh/kg. Initial feasibility studies have been carried out in button cells with a Li metal anode and the FeF3 cathode. Lithium test cells with theoretical specific energies as high as 1100-1300 Wh/kg (for the Li/FeF3 couple) and more than twenty five charge/ discharge cycles have been demonstrated.