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In this work, the high-temperature reduction of nickel oxide and reoxidation of metallic nickel in the YSZ–NiO anode material have been studied. As-sintered material (of mode 1) manufactured by tape casting underwent two treatment modes: one-time reduction (mode 2) in pure hydrogen for 4 h at 600 °C under a pressure of 0.15 MPa; reduction/oxidation (redox) for five cycles in hydrogen/air atmospheres at 600 °C (mode 3). The material of mode 1 exhibited a bending strength of about 209 MPa. This level is high enough for anode materials. Significant changes have been detected in the microstructure of the material reduced in hydrogen (mode 2). Agglomerates of particles (average size about 5 µm) with a predominance of the zirconium phase as well as regions of small particles (1 µm) with uniformly distributed both the nickel and zirconium phases were revealed. The intergranular fracture micromechanism prevailed in the specimens tested. The material strength (40 MPa) did not satisfy the requirements for anode materials. Despite too "rigid" redox treatment mode in pure hydrogen and air at 600 °C (mode 3), the cermet is not inferior in strength (85 MPa) to those fabricated using other techniques. On the specimen fracture surface, a porous core and dense outer layers have been revealed. An increased amount of nickel in the surface layer is probably a consequence of the microstructural transformation due to the diffusion of nickel from the subsurface region towards the surface. The redox treatment caused the specimen core degradation due to forming large pores, their coalescence into cracks, and loss of material integrity. In contrast to the mixed fracture micromechanism noted in the specimen surface layer, the intergranular one in the core was revealed. The reached level of electrical conductivity and a positive effect of the treatment on the material strength indicate the potential of the tape cast material, especially, in the case of reduction in Ar–5 vol% H2 gas mixture instead of pure hydrogen. [ABSTRACT FROM AUTHOR]