A surface treatment method has been developed to activate the surface of an AB(5) type (La-20 Ce-7 Pr-1 Nd-4 Al-2 Mn-5 Co-6 Ni-55) alloy. In the process the surface is covered with a porous surface layer containing needle shaped rare earth hydroxides after etching by a potassium hydroxide solution. TEM studies show in addition the presence of a denser surface oxide layer with embedded Ni containing clusters covering the bulk alloy. The magnetic properties of the alloy powders change with the surface treatment. In addition to a paramagnetic component of the bulk alloy, surface treated alloy also displays superparamagnetic and ferromagnetic properties. In electrochemical half-cell tests, the alloy shows better high-rate dischargeability with increasing presence of magnetic clusters in the metal hydride particles surface. (C) 2016 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.