The invention relates to a new method of manufacturing a sealed rechargeable alkaline battery including metal oxides as positive electrode active materials and a hydrogen absorbing alloy as a negative electrode material. The basic principle of the method is that, instead of the conventional electrochemical formation, the property of a hydrogen absorbing alloy is utilized to cause the negative electrode to absorb hydrogen to thereby achieve precharged portions within the negative electrode having a relatively larger capacity as compared with the positive electrode. Regardless of the kind of positive electrode, the method of the invention insures a broad freedom in the capacity appropriation between the positive and negative electrodes.