PURPOSE: To obtain metallic Ni powder having a desired grain size and shape in the titled manufacture by reducing Ni chloride powder with gaseous H2, by treating the Ni chloride powder at a specified temp. while fluidizing the powder.

CONSTITUTION: Solid NiCl2 is fluidized in a gas flow contg. gaseous H2, preferably a gas flow consisting of ≥about 30vol.% gaseous H2 and the balance N2 or other inert gas in a furnace kept at 500W700°C by heating the furnace from the outside or by blowing a heated gas. Thus, the NiCl2 is reduced, and the reduced product is cooled to ordinary temp. in an inert atmosphere and taken out as fine metallic Ni powder which is hardly reoxidized.