A composite of Fe2O3 capped by conductive polyaniline (PANI) was synthesized by a facile two-step method through combining homogeneous Fe2O3 suspension prepared by a hydrothermal method and in-situ polymerization of aniline. As anode material for lithium ion batteries, the Fe2O3/PANI composite manifests very large discharge capacities of 1635 mAh g(-1), 1480 mAh g(-1) at large currents of 1.0 and 2.0 A g(-1) (1C and 2C), respectively, as well as good cycling performance and rate capacity. The enhancement of electrochemical performance is attributed to the improved electrical conductivity and effective ion transportation of the composite electrode, in that, PANI keeps the Fe2O3 nanorods uniformly connected and offers conductive contact between the electrolyte and the active electrode materials. (C) 2014 Elsevier B.V. All rights reserved.