Unique Ni compound nanocrystals were successfully grown on carbon nanotubes (CNTs) by cooling a mixed chloride flux. Cup-stacked CNTs (CSCNTs) were used as the nanocarbon materials because of their structural features. The grown nanocrystals had a nanosheet structure, which was densely assembled and had a ribbon-like morphology. Therefore, the nanocrystal/CSCNT composites were expected to have a highly active surface area for the catalyst composites. The selected area electron diffraction pattern and the related radial intensity profiles indicated that the grown nanocrystals were Ni(OH)2. When the pristine CSCNTs were used as a starting material, the formation efficiency of the nanocrystal/CSCNT composites decreased because the pristine CSCNTs were not dispersed in the KCl-LiCl flux. Therefore, functionalization of the CSCNTs was carried out with VUV light irradiation. The dispersibility of the VUV light-treated CSCNTs increased in the KCl-LiCl flux in comparison with the pristine CSCNTs because oxygen-containing functional groups, such as -COOH and -CO, were introduced onto the surfaces of the CSCNTs.