We identify that reversible formation/decomposition of lithium oxide, pulverization of Fe3O4 nanoparticles, and electrolyte reactions, are contributors to the enhanced capacity observed in the Fe3O4 electrode upon long cycling. Introducing three-dimensional graphene foam to form a composite with Fe3O4 nanoparticles largely increases the capacity (~ 1220mAhg−1 vs. ~ 690mAhg−1) and promotes the cycling induced capacity enhancement (an earlier capacity rise and a faster rising rate) of the Fe3O4 electrode. Together with Fe3O4 nanoparticles, the presence of graphene effectively promotes the electrolyte reactions and reversible formation/decomposition of lithium oxide. At the same time, activation of GF also occurs in the presence of Fe3O4 nanoparticles, further increases the capacity of the nanocomposite.