Abstract: The finite element formulation of generalized inverse matrix force method,or so-called large increment method (LIM) for material nonlinearity problems is proposed. LIM is a new iteration method,which is based on theories of the force method and generalized inverse matrix (GIM),and is of unique characteristics and advantages especially for material nonlinearity problems. Unlike the conventional incremental method based on the displacement method,which can not avoid time consumption and error accumulation,the proposed new method can work with very large increment up to several loading cycles as based on the force method. Unlike the classical force method,LIM does not need to find some basic structure any more. Consequently,this method sheds a new light to the force method in the computational mechanics. In addition,LIM is of intrinsic parallel-calculating characteristics,which are different from the traditional sub-structural algorithm based on displacement method. The algorithm can be divided into the global stage and the local stage. The finite element formulation with consideration of material nonlinearity is given. It includes the expression of consistent elastoplastic flexibility and stiffness matrix. An example of plane stress problem is also given to show the generality of this new method.