The reaction of LaNi5 with Cu powder during sintering at high temperature was examined in order to obtain better conductivity and ductility. Pressurized and forged copper-LaNi5 pellets were investigated by optical metallography, DTA, XRD and TEM. The need for heat treatment after pressing and/or forging is vital to obtain good d iffusion bondi ng between the copper particles and to improve the material strength. No interaction between La, Ni and Cu were observed after heating at 1173 K but a very stable La2O8 phase was created around the LaNi5 particle. Rolling up to 85% reduction showed good ductility.