Abstract: Negative electrode was made of Cu-coated hydrogen storage alloy powders. The capacity decay was only 5% after 100 cycles compared with its saturated value at 25⁰C (1C charge-discharge, 100% DOD).In addition, the charge-discharge characteristics were improved by the copper coating, especially at high rate charge/discharge due to the role of copper as a microcurrent collector forfacilitating charge transfer reaction on the alloy surface. Experimental Ni/MH battery (AA size) using Cu-coated alloy powders as anode materials showed a longer cycle life and a higher average discharge voltage than one using the bare alloy. Moreover, the results showed that after microencapsulation with copper, a little part of the capacity of hydrogen storage alloy was lost because of the existance of copper film with high overpotential of hydrogen evolution and poor electrocatalytic activity, causing an uncompleted contact between alloy and electrolyte.