Selected hydrides (TiH2, ZrH2), chlorides (VCl3, ScCl3) or oxides (V2O5) utilized as additives facilitating hydrogen release and uptake for magnesium hydride were investigated using mechano-chemical treatment and in-situ synchrotron radiation powder X-ray diffraction studies. The fastest hydrogen desorption and absorption kinetics for MgH2 was observed for a sample with 5 mol% V2O5 at 320 °C. Additional activation of the system (2 cycles, vacuum/p(H2) ~150 bar, 450 °C) leads to significant improvement of the kinetics even at lower temperatures, 270 °C. The observed prolific effect is achieved through the full reduction of vanadium oxides and formation of an efficient vanadium catalyst as nanoparticles and possibly interfacial effects in the MgO/Mg/MgH2/V system introduced during cycling hydrogen release and uptake in hydrogen/dynamic vacuum at 450 °C. Nanostructuring as well as hydrogen permeability via vanadium nanoparticles may improve kinetics and reduce the apparent activation energy for hydrogen release. Thus, the enhancement of hydrogen release/uptake in the MgH2 owe to “in situ” formation of vanadium nanoparticles by reduction of V2O5.