A series of Ni-deposited natural graphite composite materials have been, prepared by hydrothermal hydrogen reduction method. The size of the Ni bead is determined to be around 300 nm and most of the Ni beads are distributed on the edge planes of a graphite particle. The electrochemical performance of these composites has been studied as active anode material for lithium ion batteries. It is found that the composite materials have a higher discharge capacity than that of pure graphite electrode at high current density. The improved rate performance of the Ni-deposited graphite samples is attributed to the lower electron transfer resistance and the improvement of the electronic conductivity of the composite materials.