Nano-scale beta-Ni(OH)(2) and Co(OH)(2) were prepared by controlled crystallization, mixed by ball milling and granulated to form about 5 pm spherical grains by spray drying granulation. The granulation significantly enhanced the electrochemical performance of nano-scale Ni(OH)(2), probably because of good size matching between the active material and the electric conductor. The granulated grains of nano-scale Ni(OH)(2) presented high performance at high discharge C-rate, and its specific capacity at 10 C exceeded that of conventional spherical micro-scale Ni(OH)(2) at 3 C. The granulated nano-scale beta-Ni(OH)(2) is a promising cathode active material for high power Ni-MH batteries. (c) 2005 Elsevier Ltd. All rights reserved.