Li[Ni1/3Mn1/3Co1/3]02 cathodes of approximately the same loading of active material with different amounts of inactive materials were fabricated and calendared to different porosity. EV and HPPC tests revealed that Li[Ni1/3Mn1/3Co1/3]O2 cathode performance is a strong function of inactive material amount and porosity with respect to energy density, pulse power, and cycling capability. Li[Ni1/3Mn1/3Co1/3]02 laminates containing 2% PVdF and 1.6% acetylene black at 30% porosity exhibits the best overall electrochemical properties including energy density, pulse power, and cycleability. Combined with an MCMB anode, the full cell delivers an energy density of 520 Wh/L which well exceeds the 40-mile energy-density goal announced by FreedomCar of 207 Wh/L. The result illustrates that proper engineering of the cell, module, and pack design may meet the PHEV 40-mile goal. ©The Electrochemical Society.