There are intensive research activities for alternative electrode materials in the next generation of rechargeable lithium ion batteries, particularly for those used in hybrid and pure electric vehicles. Phosphate-based cathode materials have been a considerable investigation due to its attractive properties (low-cost, abundant iron and phosphate groups). Since the monoclinic structure of lithium iron pyrophosphate (Li₂FeP₂O₇) was first reported in 2010, it has captured the attention of researchers due to its higher reversible potential of 3.5 V vs. Li/Li. In this work, Li₂FeP₂O₇ nanoparticles with 50-100nm in diameters were synthesized through a sol-gel method, the particles are coated by carbon layers (about 5 nm), they can deliver an initial discharge capacity of 112, 100 and 90.0 mAh g^-1 at the rates of 0.025C, 0.1C and 1C, respectively. The capacity retention can still reach about 95.2% after 200 cycles at 1C.