A novel nanoscale phase separation process has been discovered to promote the growth and segregation of single-crystal LiNi0.8Mn0.1Co0.1O2 (NMC811). This process occurs directly during high-temperature calcination without significant agglomeration. The key lies in converting transition metal hydroxide (TM(OH)2) precursors with well-controlled morphology into transition metal oxide (TMO) intermediates before reacting them with lithium salt. The nanoscale redistribution of Ni in TMO, resulting from the concurrent formation of spinel and rock salt phases, helps to deagglomerate the clusters of later-formed NMC811 crystals. The as-prepared single-crystal NMC811 is further validated in a 2Ah pouch cell, demonstrating 1,000 stable cycles. The fundamentally new reaction mechanism of single-crystal growth and segregation provides a new direction for large-scale synthesis of a broad range of single crystals for advanced energy storage.