Nanostructured, aluminum-stabilized nickel, hydroxides described as Ni1−x Al x (OH)2.(CO3) x/2·nH2O (x=0.05–0.2), which are similar to α-Ni(OH)2·xH2O in crystal structure are examined as cathode materials for Ni–Cd cells. The structure, morphology and electrochemical performance are investigated. The structural changes and stability of nanophase aluminum-stabilized, alpha nickel hydroxides with different x values analyzed during cycling by means of powder X-ray diffraction. Compared with β-Ni(OH)2, the nanophase, aluminum-stabilized α-Ni(OH)2 with x=0.15 is highly stable against overcharge.