The charge-discharge characteristics of the Mg₂Ni-x wt.%Nd (x=0-3) electrodes were investigated. The electrodes were prepared by the mechanical grinding of the induction-melted Mg₂Ni alloy powders with Ni and/or Nd using planetary ball mill apparatus. The discharge capacity of the Mg₂Ni alloy increased with the increase in the nickel content. The electrode possessing 100 wt.% nickel powder showed the initial capacity of 760 mAh/g and the capacity decay with the cycle number was less than that of the 55 wt.% nickel powder. The Nd was added to this composition. It was found that the Mg₂Ni-100 wt.%Ni -0.2 wt.%Nd alloy showed an excellent charge-discharge cycle characteristics compared with the other reported Mg-Ni alloy system. The discharge capacity was 400 mAh/g after 70 cycles. Such an Improved cycle life seems to be attributed to the improvement in the corrosion characteristics of the alloy. The anodic polarization curve of the Mg₂Ni-100 wt.%Ni-0.2 wt.%Nd alloy exhibited better passivating behavior than that of the Mg₂Ni-100 wt.%Ni.