Nickel Hydride batteries have a higher energy density than Nickel Cadmium batteries, so batteries are smaller for a given capacity. This is useful if you have a small model which it is difficult to fit the required number of batteries in to. They also do not contain cadmium, and do not therefore require special disposal.
However, they are more expensive than NiCad batteries and are slightly less forgiving of mistreatment. If you have the space, NiCad are a cheaper and better choice for model railway applications. More.
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