The nickel hydroxide particles for a nickel hydroxide electrode may be treated using an alkaline solution of a strong oxidizing agent such as sodium or potassium persulfate to modify the surface nickel hydroxide structure. The resulting modified surface structure has been found to impart various benefits to electrodes formed from the nickel hydroxide. It is believed that the oxidation of cobalt compounds at the surface of the nickel hydroxide particles results in a highly conductive cobalt compound that plays an important role in the high reliability, high stability and high capacity utilization of nickel electrodes as described herein.