Nanostructured electrode materials have significant potential for boosting the electrochemical performance of secondary batteries. Fabrication of these nanomaterials with a facile and cost-effective route is crucial for their practical applications. Herein, alpha-Fe2O3 nanocrystals are prepared by a rather simple and low-cost one-step thermal decomposition method with FeSO4 center dot 7H(2)O and glucose as raw materials. When evaluated as anode material for lithium ion batteries, the alpha-Fe2O3 nanocrystals electrode exhibits a high reversible capacity of 1100 mAh g(-1) at 1 A g(-1) after 300 cycles; The long-term cyclability shows 690 mAh g(-1) at 3 A g(-1) after 800 cycles; Even when the current is increased to 10 A g(-1), a comparable capacity of 406 mAh g(-1) is retained. The microstructure and composition evolutions of the alpha-Fe2O3 electrode during cycling are analyzed by ex-situ field emission scanning electron microscope, transmission electron microscopy, Fourier transform infrared spectra, and X-ray photoelectron spectroscopy measurements. It is evidenced that the reversible interfacial lithium storage and pulverization of alpha-Fe2O3 nanocrystals are contributors to the enhanced capacity upon long-term cycling. When applied in a full cell lithium ion battery, the alpha-Fe2O3 nanocrystals electrode still display a high capacity and good cycling stability.