Several important features have been introduced to make the MH/MnO2 system competitive with other rechargeable batteries. These include improvement in cell construction, the adoption of a good hydrophilic separator, the adoption of a new charging regime and the substitution of the multicycle step formation procedure for the single-cycle step formation procedure. Test results show that the performance of the MH/MnO2 cell is significantly improved. 400 cycles can be expected at 100% DOD and 1100 cycles can be obtained at 60% DOD. The high rate capability of the MH/MnO2 cell is also improved.