SnO-carbon nanotube composite was synthesized by a sol-gel method. The electrochemical behavior of the composite using an anode active material in lithium-ion batteries was investigated. It was found that the composite showed enhanced anode performance compared with the unsupported SnO or carbon nanotube (CNT). The capacity fade of the composite electrode was reduced over unsupported SnO or CNT. We attribute the results to the conductivity and ductility of the CNT matrix, and the high dispersion of SnO. (C) 2003 Published by Elsevier Science Ltd.