Ni-rich layered oxides are envisioned as the most promising cathode materials for next-generation lithium-ion batteries; however, their practical adoption is plagued by fast capacity decay originating from chemo-mechanical degradation. The intrinsic chemical–mechanical instability, inherited from atomic- and nanoscale defects generated during synthesis, is not yet resolved. Here, atomic- and nanoscale structural evolution during solid-state synthesis of Ni-rich layered cathode, Li[Ni0.92Co0.03Mn0.05]O2, is investigated using combined X-ray/neutron scattering and electron/X-ray microscopy. The multiscale analyses demonstrate the intertwined correlation between phase transition and microstructural evolution, with atomic-scale defects derived from the decomposition of precursors leading to the creation of intra/inter-granular pores. The nucleation and coalescence mechanism of pore defects during the synthesis of Ni-rich layered cathodes are quantitatively revealed. Furthermore, a modified synthetic route is proposed to effectively circumvent the formation of nanoscale defects in Ni-rich layered cathodes by facilitating uniform synthetic reactions, resulting in superior electrochemical and microstructural stability.