A rechargeable iron-ion battery (Fe-ion battery) has been fabricated in our laboratory using a pure ionic liquid electrolyte. Magnetic ionic liquids of 1-butyl-3-methylimidazolium tetrachloroferrate (BmimFeCl4) and 1-methyl-3-octylimidazolium tetrachloroferrate (OmimFeCl4) are synthesized and utilized as electrolytes in this work. The chemical structure of the two ionic liquids (ILs) is investigated using Raman analysis. In addition, the physical and thermal stability properties of the ionic liquid (IL) BmimFeCl4, including density, viscosity, melting point, and decomposition temperature, are investigated using a density meter, viscosity meter, differential scanning calorimeter, and thermogravimetric analyzer. Moreover, the electrochemical properties, including electrochemical window, and ionic conductivity of the IL BmimFeCl4 are investigated using an electrochemical instrument and a conductivity meter. It is found that the magnetic IL BmimFeCl4 has good physical and electrochemical properties to be utilized as an electrolyte for iron-ion battery fabrication. Iron-containing materials, including pure iron foil, carbon-coated iron nanoparticles, and iron powder, are used as a cathode in the Fe-ion battery. The anode of the Fe-ion battery is graphite. Electrochemical properties of full cells are investigated, including cyclic voltammetry curves and specific charge–discharge capacity. The Fe-ion battery is a unique rechargeable ion battery with magnetic ions. In addition, pure IL BmimFeCl4 is utilized as an electrolyte in this Fe-ion battery. IL BmimFeCl4 is stable and almost nonvolatile. Therefore, an Fe-ion battery with a pure IL electrolyte is safer than that with an organic electrolyte. An Fe-ion battery using a pure IL electrolyte is a promising battery with many potential applications.