Nanosized tin powder was prepared by laser-induced vapor deposition and studied as an alternative anode material for lithium ion batteries. The nano tin particles are spherical, and their size varies from 5nm to 80nm. The prepared powder consists of two compounds: a major amount of Sn and a minor amount of SnO. Results of cyclic voltammograms (CVs) indicate that SnO is deoxidized to Sn almost completely in the first cycle. The reaction of tin with lithium proceeds in two steps. At first, a Li-deficient phase is formed, later a Li-rich phase. Reaction kinetics are controlled by a diffusion step, and the diffusion coefficient of lithium ions in the anode is calculated to be 4.15×10−8 cm2 s−1. The initial charge capacity is nearly to the theoretical reversible capacity of lithium insertion into tin, resulting in Li22Sn5.