The role of a SnO2-samarium doped ceria (SDC) additional anode layer in a direct carbon fuel cell (DCFC) with SDC-(Li0.67Na0.33)2CO3 composite electrolyte and lithiated NiO-SDC-(Li0.67Na0.33)2CO3 composite cathode is investigated and compared with a NiO-SDC extra anode layer. Catalytic grown carbon fiber mixed with (Li0.67Na0.33)2CO3 is used as a fuel. At 750 °C, the maximum power outputs of 192 and 143 mW cm−2 are obtained by the cells with SnO2-SDC and NiO-SDC layers, respectively. In the SnO2-SDC layer, the reduction of SnO2 and the oxidation of Sn happen simultaneously during the cell operation, and the Sn/SnO2 redox cycle provides an additional route for fuel conversion. The formation of an insulating dense interlayer between the anode and electrolyte layers, which usually happens in DCFCs with metal anodes, is avoided in the cell with the SnO2-SDC layer, and the stability of the cell is improved consequently.