Provided is a lithium ion battery that exhibits a significantly improved specific capacity and much longer charge-discharge cycle life. In one preferred embodiment, the battery comprises a cathode, an anode, an electrolyte in ionic contact with both the cathode and the anode, and an optional separator disposed between the cathode and the anode, wherein, prior to the battery being assembled, the anode comprises (a) an anode active material layer composed of fine particles of a first anode active material having an average size from 1 nm to 10 μm, an optional conductive additive, and an optional binder that bonds the fine particles and the conductive additive together to form the anode active material layer having structural integrity and (b) a layer of lithium metal or lithium metal alloy having greater than 80% by weight of lithium therein, wherein the layer of lithium metal or lithium metal alloy is in physical contact with the anode active material layer.