A alkali storage cell includes a non-sintered type nickel electrode which includes a highly efficient nickel hydroxide active material and which causes no capacity decrease during an over-discharge operation. The nickel electrode contains an active material composed of nickel hydroxide, a solid solution of at least one of zinc, cadmium, magnesium, and calcium which are added to the nickel hydroxide, and cobalt compound layers which are formed over the surfaces of particles of the nickel hydroxide. The cobalt compound layers have an oxidation number of larger than 2 and a disordered crystal structure. Such an active material can be manufactured by mixing nickel hydroxide powder containing a solid solution of at least one of zinc, cadmium, magnesium, and calcium with either metallic cobalt or a cobalt compound, and subjecting the mixture to heat treatment in the presence of oxygen and alkali. Another production method is to precipitate a cobalt compound over the surfaces of the nickel hydroxide powder containing a solid solution of at least one of zinc, cadmium, magnesium, and calcium so as to form cobalt compound layers, before subjecting it to the heat treatment in the same conditions.