In this study, an energy storage device using a three-electrode battery is fabricated. The charging process takes place during electrolysis of the alkaline electrolyte where hydrogen is stored at the palladium bifunctional electrode. Upon discharging, power is generated by operating the alkaline fuel cell using hydrogen which is accumulated in the palladium hydride bifunctional electrode during the charging process. The bifunctional palladium electrode is prepared by electrodeposition using a hydrogen bubble template followed by a galvanic displacement reaction of platinum in order to functionalize the electrode to work not only as a hydrogen storage material but also as an anode in a fuel cell. This bifunctional electrode has a sufficiently high surface area and the platinum catalyst populates at the surface of electrode to operate the fuel cell. The charging and discharging performance of the three-electrode battery are characterized. In addition, the cycle stability is investigated.