$LiNiO_2$ cathode powders with fine size have been synthesized by spray pyrolysis from the spray solution with citric acid and ethylene glycol. The as-prepared powders with spherical shape, porous structure and micron size turned into $LiNiO_2$ powders with micron size and regular morphology after post-treatment at $800^{circ}C$. The initial discharge capacities of the $LiNiO_2$ powders changed from 199 to 171mAh/g when the concentrations of the citric acid and ethylene glycol added to the spray solutions were changed from 0 to 1 M. The maximum initial discharge capacity of the $LiNiO_2$ powders obtained from the spray solution with citric acid and ethylene glycol was 198 mAh/g when the lithium component added to the spray solution was 6 mol% excess of the stoichiometric amount. The discharge capacities of the fine-sized $LiNiO_2$ powders dropped from 198 to 163 mAh/g by the 30 th cycle at a current density of 0.1 C.