The effects of multiwalled carbon nanotubes (MWNTs) and carbon black (CB) as conducting additives on the rate capability of natural graphite negative electrodes in lithium-ion (Li-ion) batteries is investigated within concentration ranges where no degradation of anode capacity is observed. MWNT or CB solutions prepared with Nafion in an 80:20 volume mixture of water:1-propanol are incorporated into graphite precursor suspensions consisting of graphite particulates, carboxymethyl cellulose, and styrene butadiene rubber prepared in an aqueous medium. While negative electrodes with MWNTs demonstrate much better rate behaviour than those without MWNTs at a high C-rate, the rate capability of negative electrodes with MWNTs is not much different from that with CB. The reason for this similar behaviour is investigated with respect to the structural changes and aspect ratio of MWNTs, as well as the density difference between MWNTs and carbon black. Scanning electron microscopy images and Raman spectra for the dispersed MWNTs indicate that MWNTs are significantly damaged and shortened during dispersion, which reduces their electrical conductivity and increases their percolation threshold. This damage negatively affects the rate capability of graphite-nanotube composite electrodes.