A high‐performance and low‐cost pasted nickel electrode made from a metal fiber substrate has been developed. The electrode is designed so that it exhibits active material utilization close to 100%, with an energy density as high as 170 mAh/g or 520 mAh/cm3. This high active material utilization, even with a metal fiber substrate, which is a poor current collector compared with a conventional sintered nickel powder plaque, has been made possible by adding which dissolves and precipitates on the surface of nickel hydroxide particles as during standing and then is converted to during the subsequent charging, which provides a good electrical path between the nickel hydroxide particles and the metal fiber substrate. Thus‐formed is not reduced in the subsequent discharges of the electrode and serves as a good current collector to ensure a high active material utilization throughout the life of the electrode.