Disclosed is a facile and cost effective method of producing nano silicon powder or graphene-doped silicon nano powder having a particle size smaller than 100 nm. The method comprises: (a) preparing a silicon precursor/graphene nano composite; (b) mixing the silicon precursor/graphene nano composite with a desired quantity of magnesium; (c) converting the silicon precursor to form a mixture of graphene-doped silicon and a reaction by-product through a thermal and/or chemical reduction reaction; and (d) removing the reaction by-product from the mixture to obtain graphene-doped silicon nano powder.