The deterioration mechanisms of a Ni–metal hydride (Ni–MH) battery system during operation is investigated. A decrease of the discharge voltage is observed at the early stage of the cycle, which indicates the possible occurrence of an unexpected system shutdown of the battery at low state of charge. Cyclic voltammetry and surface examination are used to investigate the causes of this phenomenon. The elution of elements such as Al and Mn from the metal hydride negative electrodes is shown to affect the oxidation/reduction behavior of Co, the conductive material of the positive electrode. Furthermore, the possible methods to strengthen the conductive network of Co, including pretreatment of the positive electrode, addition of conductive material, and precipitation of the elution elements as insoluble compounds to reduce their effect are also investigated. By combining these strategies, deterioration of the conductive network can be prevented in the early stage.