Gas atomized powders of LaNi2.5Co2.4Al0.1 alloy were prepared and used for the construction of nickel/metal hydride battery. The powder characteristics such as particle size distribution, morphology, oxygen content, crystal structure for different fractions were analyzed. The hydriding and electrochemical properties were evaluated too. All fractions have a similar particle morphology and only a slightly different X-ray determined lattice parameters of the alloy. The fractions with particle size less than 50 pm have a poor activity at both gaseous and electrochemical hydriding. This phenomenon may be attributed to the presence of fine fractions of the amorphous component. Gas atomized powders of coarse fractions possess high corrosion resistance and display a similar hydrogen and electrochemical capacity as are melt alloys.