I made a very simple felt pouch using regular and conductive thread.
The materials are:
Felt of any color and size depending on what you want, I used white felt about 4 inches wide and 6 inches long
How To Make:
First you fold your felt in the pattern and size you want to make your pouch and choose where you want to place your LED. Next you position your battery holder on the inside of the pouch and sew it in place with normal thread. Make sure you only sew two of the four holes, the other two are for your conductive thread. After this mark out your conductive thread path from where your LED will be to your battery holder. Then you can sew on your path, make sure you don't cross your negative and positive thread sides of the LED and that the positive side of the LED connects to the positive side of the battery holder and the same with negative. Last you can sew together the sides of your pouch.