A simple and low cost urea-assisted auto-combustion route was investigated for the synthesis of carbon coated CoO nanocomposite. CHN analysis determined the carbon content in CoO/C nanocomposite to be very low as 0.27 wt%. The results show that the CoO/C nanocomposite electrode displays marked lower charge transfer resistance, high lithium storage capacity, and much better rate capability than original CoO nanoparticles electrode.