A method for producing a coated powder including homogeneously mixing an electrochemically active material including electrochemically active particles with nanosize particles in a ratio determined by the surface area of the electrochemically active particles to form a homogeneous powder, adding a polymer and mixing to form a homogeneous solid mixture, adding a solvent to dissolve the polymer and form a viscous slurry, mixing the viscous slurry, and drying the viscous slurry to cause the nanosize particles to become localized adjacent to an outer surface of the electrochemically active particles with the polymer maintaining the proximity between the nanosize conductive particles and the outer surface of the electrochemically active particles.