A pasted positive nickel hydroxide electrode for use in battery cells (e.g., in nickel zinc cells, and nickel metal hydride cells) includes nickel hydroxide particles, a cobalt metal and/or cobalt compound and a sulfur-containing complexing agent capable of forming a complex with cobalt. The presence of the sulfur-containing complexing agent, such as dialkyldithiocarbamate (e.g., sodium diethyldithiocarbamate) improves lifetime and capacity utilization of the nickel electrode. The resulting pasted nickel hydroxide electrode includes a CoOOH conductive matrix after formation. The surface of the nickel hydroxide particles in the electrode is modified in some embodiments by providing a cobalt-containing coating onto the surface of the nickel hydroxide particles, followed by oxidation with a strong oxidizing agent. The complexing agent can be added before, after, or during the oxidation.