Electrochemical performances of a high-capacity and long life β-α core-shell structured Ni 0.84 Co 0.12 Al 0.04 (OH) 2 as the positive electrode active material were tested in a pouch design and compared to those of a standard β-Ni 0.91 Co 0.045 Zn 0.045 (OH) 2 . The core-shell materials were fabricated with a continuous co-precipitation process, which created an Al-poor core and an Al-rich shell during the nucleation and particle growth stages, respectively. The Al-rich shell became α-Ni(OH) 2 after electrical activation and remained intact through the cycling. Pouch cells with the high-capacity β-α core-shell positive electrode material show higher charge acceptances and discharge capacities at 0.1C, 0.2C, 0.5C, and 1C, improved self-discharge performances, and reduced internal and surface charge-transfer resistances, at both room temperature and −10 • C when compared to those with the standard positive electrode material. While the high capacity of the core-shell material can be attributed to the α phase with a multi-electron transfer capability, the improvement in high-rate capability (lower resistance) is caused by the unique surface morphology and abundant interface sites at the β-α grain boundaries. Gravimetric energy densities of pouch cells made with the high-capacity and standard positive materials are 127 and 110 Wh·kg −1 , respectively. A further improvement in capacity is expected via the continued optimization of pouch design and the use of high-capacity metal hydride alloy.