α-Fe2O3 nanorods were synthesized by a facile hydrothermal method. The as-prepared α-Fe2O3 nanorods have a high quality crystalline nanostructure with diameters in the range of 60–80nm and lengths extending from 300 to 500nm. The crystal structure of the α-Fe2O3 nanorods was characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM) and transmission electron microscopy (TEM). The α-Fe2O3 nanorod anodes exhibit a stable specific capacity of 800mAh/g. This indicates significantly improved electrochemical performance in lithium-ion cells, compared to that of commercial microcrystalline α-Fe2O3 powders.