The classical (over 100 years) oxygen ion conductor and theory for solid oxide fuel cells (SOFCs) have met critical challenges, which are caused by the electrolyte material, the heart of the SOFC. Ionic conductivity of 0.1 S cm(-1) as a basic requirement limits conventional SOFC electrolyte material, yttrium stabilized zirconia (YSZ) functioning at ca. 1000 degrees C. Such high temperature prevents SOFC technology from commercialization. Design and development of materials functioning at low temperatures are therefore a critical challenge. State of the art of the nanotechnology remarks a great potential for SOFCs. Through a review of typical SOFC electrolyte materials and analysis of the ionic conduction theory as well as constrains and disadvantages in single-phase materials, the need for design, development and theory of new materials are obvious. Our approach is to design and develop two-phase materials and functionalities at interfaces between the constituent phases in nanotech-based composites, that is nanocomposites. The nano- and composite technologies can realize superionic conduction by constructing the interfaces as 'ion highways'. Manipulation of the interphases of the nanocomposites can overcome SOFC challenges and thus enhance and improve material conductivity and FC performance at significantly lower temperatures (300-600 degrees C). Copyright (C) 2009 John Wiley & Sons, Ltd.