Lithium ions reversibly intercalate into graphite anodes in electrolytes containing sulfur dioxide. The electrolyte solutions were composed of LiAsF{sub 6} 1 M and {approximately}20% by weight SO{sub 2} in methyl formate, propylene carbonate, diethyl carbonate, or dimethyl carbonate. A high degree of Li-ion intercalation into graphite and stable cycle life were obtained in cells containing these electrolyte systems, which were previously thought to be incompatible with graphite negative electrodes because the graphite structure was destroyed by interaction with the solvent molecules. The use of SO{sub 2} as an additive to the organic solution offers the advantage of forming fully developed passive films on graphite at much higher potential (2.7 V vs. Li/Li{sup +}) than that of electrolyte reduction (<2 V vs. Li/Li{sup +}) and the intercalation stages (0.3 to 0 V vs. Li/Li{sup +}). These carbon surface films, composed of a mixture of SO{sub 2} reduction products including Li{sub 2}S and lithium oxysulfur compounds, are primarily responsible for the improved characteristics of Li-ion cells containing these new electrolyte systems.