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Nickel-cadmium batteries work with normal anode and cathode principles, similar to how all batteries work. Nickel hydroxide is used as the anode, and cadmium is used for the cathode.
The chemical reaction which describes how the battery works is as follows:
2NiO(OH) + Cd + 2H2O --> 2Ni(OH)2 + Cd(OH)2.
The key thing to notice in that reaction is that the battery's electrolyte, potassium hydroxide (KOH), is not consumed. That, plus the fact that the reaction can work just fine going in the opposite direction, make NiCd batteries not only rechargeable, but long-lived as well.
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