A sealed type nickel-hydride battery comprising a positive electrode made of nickel oxides and/or Ni(OH).sub.2 as an active material, a negative electrode made of hydrogen storage alloys as main materials which may absorb and desorb hydrogen as an active material electrochemically, an alkaline electrolyte, and a separator. Prior to sealing in a battery case, the positive electrode contains cobalt and/or cobalt hydroxide having an oxidation potential lower than that of nickel hydroxide and the negative electrode is not subjected to a sufficient precharge as required for the substantial battery capacity to be limited by the capacity of the positive electrode. The battery is sealed in this state, and at an initial charge, the cobalt and/or cobalt oxides are charged and a precharged section absorbed hydrogen is formed in a negative electrode corresponding to the charge capacity of the cobalt and/or cobalt oxides.