In this paper, an innovative way to reduce the consumption of AB 5 alloy in nickel–metal-hydride (Ni–MH) batteries was introduced by the use of cobalt oxyhydroxide coated nickel hydroxide. The discharge reserve (R dis ) was completely removed from the metal hydride electrodes. The results of charge–discharge tests show that the elimination of the R dis has benefit to charge at a 0.2C rate, high current discharge and cycle life of Ni–MH batteries especially when the surplus capacity of the MH electrodes lowers. Thus, the consumption of AB 5 alloy can be reduced with the maintenance of the battery properties.