NOVELTY - The surface coating method comprises forming a dispersion of a lithium rich transitional oxide powder and an oxide precursor or a phosphate precursor in a liquid, evaporating the liquid, controlling hydrolyzation of the oxide precursor or the phosphate precursor under predetermined conditions for forming an intermediate product, and annealing the product to form an oxide coated lithium rich transitional oxide powder or an phosphate coated lithium rich transitional oxide powder. The forming and evaporating steps are performed in absence of air to prevent precipitation of precursor.    USE - The surface coating method is useful for reducing irreversible capacity loss of a lithium rich transitional oxide electrode (claimed) such as a cathode that is useful in a secondary or rechargeable lithium ion battery, which is useful: in stationary and portable devices in consumer electronic, automobile and aerospace industries; and as a powder source.    ADVANTAGE - The surface coating method is capable of: improving electrochemical performance such as columbic efficiency and cycleability of the electrode; reducing side reactions within the battery by preventing direct contact of the lithium rich transitional oxide cathode materials and the electrolyte solution; and enhancing energy density, discharge capacity and service life of the battery by reducing irreversible capacity loss of the electrode.    DETAILED DESCRIPTION - The surface coating method comprises forming a dispersion of a lithium rich transitional oxide powder and an oxide precursor or a phosphate precursor in a liquid, evaporating the liquid, controlling hydrolyzation of the oxide precursor or the phosphate precursor under predetermined conditions for forming an intermediate product, and annealing the intermediate product to form an oxide coated lithium rich transitional oxide powder or an phosphate coated lithium rich transitional oxide powder. The forming and evaporating steps are performed: in the absence of air to prevent precipitation of the precursor; and in a glove box in the presence of argon gas. The annealing step is accomplished at a temperature of: 100-400 degrees C, when titanium oxide precursor and the zirconium oxide precursor are used; 100-350 degrees C, when the aluminum oxide precursor is used; less than 90 degrees C, when the zinc oxide precursor is used; 100-700 degrees C, when the niobium oxide precursor is used; and 100-200 degrees C, when the tungsten oxide precursor is used; 100-500 degrees C, the silicon dioxide precursor is used; and 400 degrees C, when the aluminum phosphate precursor and the cobalt phosphate precursor are used. The step of controlling hydrolyzation is accomplished by exposing the lithium rich transitional oxide powder and the oxide precursor or the phosphate precursor to water vapor. The predetermined conditions include: a sealed environment; and a temperature of 50-80 degrees C. The forming step includes adding the lithium rich transitional oxide powder to the liquid to form an initial dispersion, and adding the oxide precursor or the phosphate precursor to the initial dispersion. A weight ratio of oxide coating or phosphate coating and the lithium rich transitional oxide powder is 10:100-20:100. An INDEPENDENT CLAIM is included for a method for reducing irreversible capacity loss of a lithium rich transitional oxide electrode.