We report the first in-situ time-resolved X-ray diffraction investigation in conjunction with a non-isothermal kinetic study using the model-free isoconversional kinetic method to determine the formation mechanism for the solid-state synthesis of electrochemically active LiCoO2 from Li2CO3 and Co3O4. Detailed information on the phase evolution as well as thermal events during the heating process was clearly observed, explained, and supported. This investigation provides structural as well as kinetic evidence for a multistep reaction and proposes the first plausible formation mechanism for the solid-state synthesis of LiCoO2.