This work reports a new method of synthesizing anhydrous lithium sulfide (Li2S) nanocrystals and demonstrates their potential as cathode materials for advanced rechargeable batteries. Li2S is synthesized by reacting hydrogen sulfide (H2S) with lithium naphthalenide (Li-NAP), a thermodynamically spontaneous reaction that proceeds to completion rapidly at ambient temperature and pressure. The process completely removes H2S, a major industrial waste, while cogenerating 1,4-dihydronaphthalene, itself a value-added chemical that can be used as liquid fuel. The phase purity, morphology, and homogeneity of the resulting nanopowders were confirmed by X-ray diffraction and scanning electron microscopy. The synthesized Li2S nanoparticles (100 nm) were assembled into cathodes, and their performance was compared to that of cathodes fabricated using commercial Li2S micropowders (1-5 μm). Electrochemical analyses demonstrated that the synthesized Li2S were superior in terms of (dis)charge capacity, cycling stability, output voltage, and voltage efficiency.