A hydrogen absorption alloy electrode is manufactured by a dry method in which a fluorine resin powder in an amount of 0.5 to 5.0%, based on the weight of the electrode, is with a hydrogen absorption alloy powder while applying a sufficient shearing force such that the fluorine resin powder is turned into an aggregate of monofilaments each having a diameter D of about 5 to 100 microns, a length L of about 100 to 500 microns, and an aspect ratio L/D of 10 to 100, so as to prepare a cotton-like mixture. The cotton-like mixture is placed on a conductive substrate acting as a current collector, and shaped by a roll pressing.