Alkaline nickel-cadmium batteries are among the most used industrial high-power sources. Despite stricter environmental requirements, nickel-cadmium batteries still remain as the main choice for highly reliable power sources for heavy-loaded equipment. Therefore, recovery of cadmium (Cd) from spent batteries is a challenge for the modern recycling industry, particularly as it displays high bio-toxicity. The present study describes a new green approach for Cd recovery from cadmium oxide (CdO). The paper discusses using a ternary chloride composition consisting of calcium, potassium and sodium chloride, thereby avoiding the release of Cd vapour from the reaction volume during the reduction reaction from CdO. For the protective slag layer during the reduction process (which occurs at 650 °C), a 0.515:0.0796:0.405 molar ratio of CaCl2:KCl:NaCl was chosen, with the aim of achieving a melting point at 483 °C. To describe phase and elemental composition of obtained products X-ray diffraction analysis and energy dispersive X-ray spectroscopy, respectively, were applied. Electron and optical microscopy were used for morphological observations. The presence of the metallic Cd was noted. During the reduction reaction, it was noted that slag separated into two parts: a protective upper layer and bottom layer. It was also noted that metallic Cd accumulated with increasing reaction time in the bottom part of the slag.