The SiMn–graphite composite powder was prepared by mechanical ball milling and its electrochemical performances were evaluated as the candidate anode materials for lithium ion batteries. It is found that the cyclic performance of the composite materials is improved significantly compared to SiMn alloy and pure silicon. The heat treatment of the electrodes is beneficial for enhancing the cyclic stabilities. The SiMn–20wt.% graphite composite electrode after annealing at 200°C has an initial reversible capacity of 463mAhg−1 and a charge–discharge efficiency of 70%. Moreover, the reversible capacity maintains 426mAhg−1 after 30 cycles with a coulomb efficiency of over 97%. The phase structure and morphology of the composite were analyzed by X-ray diffraction (XRD) and scanning electron microscopy. The lithiation/delithiation behavior was investigated by electrochemical impedance spectroscopy (EIS) and cyclic voltammetry. The composite materials appear to be promising candidates as negative electrodes for lithium rechargeable batteries.