This work aims to fabricate carbon-based nanomaterial using arc-discharge in liquid which is much simple and cheap compared to other techniques i.e., CVD, laser vaporization, etc. The experiment were performed using intermediate DC power supply (1300 W) to produce arc, and commercial graphite pencils (with 5 mm diameter) as negative and positive electrodes. Deionized water was used as heat absorber. The result shows that arc discharge in deionized water could effectively produce carbon nanomaterial (i.e., graphene and CNT). In adddition, finite element method-based simulation of different intercalating process of Li-ion to different shape of anode i.e., bulk and phorous anode materials for battery application is also presented in order to provide support for design of Li-ion battery based on carbon nanomaterial.