In this paper, α-Fe2O3 nanocrystals have been synthesized, using FeCl3, oleic acid, ethanol and NaOH as raw materials by a hydrothermal method at 180°C for 10h. The samples were characterized by X-ray powder diffraction (XRD) and transmission electron microscopy (TEM) for the information of crystal category, form and size. The results showed the materials are nanocubes and side-length about 20 nm. Moreover, the properties of α-Fe2O3 nanocrystals as anode materials for Li-ion batteries had been studied. The first-discharge capacity is 1280 mAh g-1, which made this material maybe one of the candidates for the negative materials.