Current carbon nanotubes (CNTs) are typically synthesized with micrometer lengths, low dispersion and low purity and thus oppose their applications in many fields. In this study, we make the first report on using a Fe compound (FeS) as a catalyst for controlling the length of CNTs to be less than 300nm. This is achieved by dissolution of a proper proportion of ferrocene and thiophene in alcohol and pyrolysis of this solution at high temperature. Sulfur, resulting from the decomposition of thiophene, is shown to play key roles in promoting the growth of CNTs and limiting their length. The reason is suggested to be that FeS retards the dissociation of carbon source and diffusion of carbon in it as compared with pure Fe. Short CNTs from the present direct synthesis and from our previous solid-state cutting are used as an electrode material in Li-ion batteries and catalyst supports in fuel cells. Compared with conventional long CNTs, short CNTs show much better electrochemical performance. Due to the simplicity of the present synthetic technique, it may be used for mass production of short CNTs. Furthermore, the application of such a new material may be investigated in wide areas such as information technology, biomedicine, environmental and energy industries.