A new rapid, envrionmentally benign and cheap process has been designed to fabricate composite metal oxide powders containing iron and chromium. In this concept, first ferro chrome powders being used as raw material has been leached out with hydrochloric acid solution at different temperatures. The acid leaching rates of iron and chromium have been systematically studied based on chemical analyses. Then the leachate containing maximum metal ions has been transferred into an autoclave and hydrothermally treated at different durations (8h and 24h) and temperatures (160⁰C and 190⁰C) to fabricate composite metal oxide powders. The morphology and the structure of the composite powder has been characterized by scanning electron microscopy and x-ray diffraction method. The possible use of this composite powders as anode material in lithium ion batteries has been evaluated based on electrochemical and galvanostatic test results.