Our experimental results show that the electrodeposition of nickel on the surface of nickel hydroxide particles can increase greatly the conductivity of the nickel hydroxide electrode. Consequently, the capacity of the electrode is significantly increased. However, there is an optimal point in terms of the amount of deposited nickel. Insufficient nickel would not provide enough conductivity since nickel hydroxide is spontaneously formed and coated on the nickel surface in KOH electrolytes. Excessive deposited nickel, on the other hand, would lead to an increase of charge transfer resistance and decrease of the electrode capacity. The optimal amount of deposited nickel was found to be around 11 wt%, resulting in the electrode capacity approaching 236 mAh/g Ni(OH)(2) and utilization of active material approaching 82%. In addition, in comparison with electrodes without deposited Ni but containing cobalt oxide, the charge efficiency for the electrode with the nickel coating at elevated temperature was found to be superior.