A hydrogen storage alloy represented by the general formula MmNi.sub.x M.sub.y, wherein Mm is a misch metal or a mixture of rare earth elements, and M is at least one element selected from the group consisting of Al, Mn, Co, Cu, Fe, Cr, Zr, Ti and V, and wherein 5.0.gtoreq.x+y.gtoreq.5.5, said alloy having a microstructure comprising:
- a phase which is composed of a crystal structure of CaCu.sub.5 type, and is capable of absorbing and desorbing hydrogen in a reversible manner, and
- at least one phase which consists mainly of an element or elements other than Mm, and is incapable of storing hydrogen.