Hydrometallurgy is a widely studied recovery process to recover NiMH battery, but the large chemical consumption restricted its application in industry. To achieve a low chemical consumption recovery process of NiMH battery anode alloy, an integrated process with selective leaching and multistage extraction was designed. In selective leaching, the leaching procedure was divided into four stages. The acid used could be reacted with the battery anode alloy totally except in the last stage. The metal components of the alloy have different reaction activities with acid, and they were leached into liquor by the sequence La > Pr > Nd > Ce > Al > Mn > Co > Ni. Hence, the selectivity of metals was achieved to make the following extraction much easier. The total chemical consumption was calculated by the ratio of UMAC/UMAC(min) and S, which in this integrated process was 60% less than in traditional recovery process. Through this recovery process, the recovery rate of rare earth elements (REEs) reached 90.5%, and the purity of the rare earth oxide (REO) product exceeded 99%. This integrated process was considered as a practical approach to recover the waste alloy.