The present invention provides one with a high cycle life Ni—Fe battery. The battery uses a particular electrolyte. The electrolyte comprises sodium hydroxide, as well as lithium hydroxide and sulfide. The use of the sodium hydroxide based electrolyte with the iron anode in the battery has been found to enhance the performance characteristics of the battery. The resulting characteristics of cycle life, as well as power and charge retention, are much improved over conventional Ni—Fe batteries.