A Layered Double Hydroxide (LDH) compound LDH ([Mg 2 Al(OH) 6 ] + x 2 H 2 O) intercalated with a redox active organic anion, Anthraquinone-2-sulfonate (AQS), has been envisioned as an electrode material for high power aqueous based battery. The purpose is to use this interlayer redox active molecule for the enhancement of the specific capacity at the LDH composite electrode, which should allow fast charge transfer at the negative electrode for high power storage applications. This is achieved by the reduction of AQS in charge and oxidation in discharge within a redox inactive LDH matrix. The first charge of this new material [Mg 2 Al(OH) 6 ] + [AQSO 3 ] − x 2 H 2 O leads to a capacity of 100 mAh g −1 at − 0.78 V vs Ag/AgCl (based on the weight of the active material) when operated in aqueous 1 M sodium acetate electrolyte. However, low cycling stability was observed, since a drastic loss in specific capacity occurs after the first charge. This study focuses at elucidating the mechanism behind this phenomenon via in situ UV/vis experiments. Subsequently, the dissolution of charged AQS anions into the electrolyte during the first charge of the anode has been identified and quantified. Such understanding of fading mechanism might lead to the design of improved LDH-based electrodes, which utilize redox active anions working in the positive potential range with enhanced cycling ability.