A vanadium-based solid-solution-type alloy V4TiNi0.65Co0.05Nb0.047Ta0.047 with a large discharge capacity was obtained using a low-cost precursor of V4Ni0.65Nb0.047 produced by aluminothermic reduction from V2O5, Nb2O5, and Ni. The alloy was deoxidized to a low level by adding mischmetal as a reducing agent when the precursor was alloyed with Ti, Co, and Ta. The alloy showed a hydrogen absorption behavior similar to an alloy prepared from high-purity constituent metals. Moreover, the Mm-Ni-O phase was precipitated as spherical particles along the TiNi network phase in the alloy, remarkably improving the electrode rate capability because of enhanced catalytic ability of the network phase.