A rechargeable lithium battery with improved electro-conductivity and improved rate characteristics and capacity characteristics is disclosed. The battery includes a positive active material that includes an olivine-type composite oxide; and a metal or an alloy thereof adhered to a surface of the olivine-type composite oxide, wherein the metal or the alloy is selected from the group consisting of germanium (Ge), zinc (Zn), gallium (Ga), and a combination thereof.