A new fire retardant-dimethyl methyl phosphate (DMMP) was tested as a nonflammable electrolyte solvent for Li-ion batteries. It is found that in the addition of chloro-ethylene carbonate (Cl-EC) as an electrolyte additive, the electrochemical reduction of DMMP molecules can be completely suppressed and the graphite anode can be cycled very well with high initial columbic efficiency (∼84%) and excellent cycling stability in the DMMP electrolyte. The prismatic C/LiCoO2 batteries using 1.0molL−1 LiClO4 +10% Cl-EC+DMMP electrolyte exhibited almost the same charge and discharge performances as those using conventional carbonate electrolytes, suggesting a feasible use of this new electrolyte for constructing nonflammable Li+-ion batteries.