Spent electrolyte generated in the Ni-Cd rechargeable battery manufacturing process containing about 400 g l−1 KOH, 50 g l−1 K2CO3 and 20 mg l−1 Cd, has a high reuse value if the cadmium is removed. We performed a systematic investigation to apply the solvent extraction technique to remove cadmium from the spent electrolyte. Potential extractants for cadmium were carefully selected and the performances of the solvents containing these extractants were studied. Amongst the ten extractants that were tested, three acidic chelating extractants, viz., Cyanex 301 (Cytec Canada Inc., a dithiophosphinic acid), Cyanex 302 (Cytec Canada Inc., a monothiophosphinic acid) and Kelex 100 (Witco, 7-alkyl-8-hydroxyquinolines) showed favourable extraction characteristics for cadmium from the highly concentrated alkaline medium. Kelex 100 also showed excellent back-extraction (stripping) characteristics for the cadmium extracted; cadmium could be quantiatively stripped from the Kelex 100 solutions with a 0.1 M HCl or 0.1 M H2SO4 solution. A process employing Kelex 100 as the extractant was developed. The feasibility of this process was demonstrated with automated mixer-settler solvent extraction units using real spent electrolyte generated in a Ni-Cd battery manufacturing plant.