In this work, appropriate material selection and process design enable the succesful production of high energy density electrode active material in the form of XAZ (where X, A and Z stand for electrochemically active, electrochemically inactive and carbon materials, respectively). Herein, the precipitates rich in iron and chromium are extracted selectively from a local ferrochromium alloy utilizing hydrometallurgy procedures. The precipitates are then exposed to separate calcination to get iron-rich and chromium-rich oxides seperately. In the end, a composite (XAZ) is fabricated under the mild synthesis conditions by combining these oxides with activated carbon and aluminum powder in a planetary ball mill. The composite's morphological, structural, and chemical properties are all optimized. The galvanostatic test results clearly demonstrate that the powder made of XAZ composite with embedded metal nanoparticles delivers 798 mAh g-1 after 100th cycle under a current load of 50 mA g-1 and high capacity (600 mAh g−1) over 300 cycles with an exceptional rate performance. It is anticipated that this research will create novel opportunities for producing high-value electrode active materials from accessible, low-cost raw ingredients.