To date, the lithium ion battery has become the focus of secondary battery studies. A considerable capacity loss during the first lithiation of its carbon electrode is a severe drawback of this kind of battery. It has been suggested frequently that the capacity loss was caused by the decomposition of the electrolyte on the surface of the carbon electrode. However, the contribution of binder reduction to this capacity loss has never been considered until now. This paper deals with the binder polytetrafluorethylene (PTFE) reduction and finds that it plays an important part in the capacity loss. It is found that (1) the capacity loss increased with increasing PTFE binder content, (2) the X-ray diffraction peaks corresponding to the PTFE binder became weaker, while more of the lithium was consumed by the carbon electrode, and disappeared when the consumed amount of lithium exceeded the theoretical value of 1070 mAh per gram of PTFE and (3) the height of the high voltage plateau of the electrochemical titration curves was just a function of storage time, and the length of the plateau was a function of the PTFE content.