Disclosed is a positive active material for a rechargeable lithium battery and a rechargeable lithium battery including the positive active material. The positive active material includes a lithiated intercalation compound capable of reversibly intercalating and deintercalating lithium and a metal oxide represented by the following Chemical Formula 1.
LixMyM′1-yO4 [Chemical Formula 1]
In the above Chemical Formula M, M′, x, and y are the same as defined in the detailed description.
The positive active material easily provides lithium needed for the irreversible chemical/physical reaction at a negative electrode during the initial charge reaction, and thus increases charge capacity of a battery, decreases its irreversible capacity, and resultantly improves its cycle life.