A carbon composite was synthesized by mechanical mixing of ball-milled graphite and PVC powders, followed by pyrolysis reaction of PVC. Natural graphite ball milled under atmosphere of argon or air leads to a disordered structure. It appears that the electrochemical lithium intercalation reaction is dependent on the atmosphere in which the graphite is ball milled. The carbon composite obtained using air-milled graphite shows a high reversible capacity and high initial coulombic efficiency compared to argon-milled graphite. This is attributed to the enhanced thermal stability of a disordered structure in the air milled sample. For the one with air-milled graphite, the disordered structure is maintained during heat treatment, while argon-milled graphite is partially crystallized.