The power is the current multiplied by voltage. The voltage depends only on chemistry. But the maximal possible current of the battery depends on the competition between the charging process and the side reactions. And speed of the charging strongly depends on the easiness of the Li extraction from the active material. The shorter is the diffusion distance, the easier will be the extraction of Li, meaning that higher currents can be used and the power will be larger.
the nano size grains of materials (for lithium ion batteries' electrodes) means that the distance to exit or enter a grain is obviously smaller compared to the conventional micron or higher size grains. Also the added mechanical stress upon lithiation is smaller and its evolution is comparatively more easy due to the fast relieve from the surface of the nano size grain. LFP with grain size in several microns is NOT favorable for lithium ion batteries.
Lithium-ion (Li-ion) batteries employ mostly a graphite, graphene anode, lithium metal oxide cathode, and lithium salt and solid electrolyte for reversible lithium ion intercalation during charge and discharge cycles.
Answer of your other queries are: Decreased diffusion distances in lithium-ion batteries reduce internal resistance, allowing ions to move more quickly, enabling faster charging and discharging, which translates to higher power output.
Furthermore, I recommend one text book as a reference for response of your queries. I am optimistic to tell you that it will assist you in future as well.
Modern Battery Engineering: A Comprehensive Introduction