Novel Fe 3 C carbon composite was proposed as new low cost and low environmental impact anode for Li-ion battery. Although the delithiated capacity of Fe 3 C without AB were 100 mAh g −1 in the first cycle at a rate of 7 mA g, that of Fe 3 C with AB was improved to 230 mAh g −1 at a rate of 50 mA g −1. Moreover, nanoparticle-Fe 3 C carbon composite including a relatively high-purity Fe 3 C could be obtained from α-Fe 2 O 3 and ion-exchange resin. The best initial delithiated capacity more than 320 mAh g −1 at a rate of 50 mA g −1 and improved anode performance were obtained in the Fe 3 C-carbon composite sintered at 650°C.