Zr-based AB(2)-type hydrogen storage alloys as dual catalysts for hydrogen adsorption and oxidation reactions in alkaline fuel cells were investigated. A hydrogen-diffusion electrode composed of this hydride alloy was constructed, and its performance in terms of catalytic activities and durability was evaluated. Results demonstrated that the hydrogen-diffusion electrode had not only good activity but also excellent stability at a current density of 40-60 mA/cm(2) after surface treatments using a 1.0 M HF solution. XPS analyses showed that the improvement in catalytic activity is related to the formation of a nickel-rich layer and the removal of other oxides on the catalyst surface. The novel possible application of Zr-based hydride alloys could lead to an attempt to exploit new catalysts to lower material cost for hydrogen fuel cells.