A rechargeable battery using novel α-Fe(2)O(3)/CNFs composite as the anode, β-Ni(OH)(2) as the cathode and LiOH/KOH solution as the electrolyte in an aqueous rechargeable battery has been proposed. The Fe(2)O(3)/Ni(OH)(2) prototype cell exhibits a high average operational voltage of 1.5 V, high rate capability and good cycling performance.