Abstract: In this paper a chemical method for the synthesis of hydrogen-storing alloy Mg₂Ni is presented, and powdered magnesium was used in excess to displace nickel in DMFso that Ni was deposited on Mg by stoichiometric amount. The Ni-coate Mg powder was heated at 550-580℃ for homogeneity of the alloy. The alloy thus prepared has excellent surface properties compared with that of the alloy prepared metallurigically, i.e, it has larger specific surface area, ease of activation, higher rates and lower temperatures for hydrogen absorption and desorption.