The insertion of a nickel atom in the CH bond of CH4 is calculated using density functional theory by determining the transition state and the dissociated state of HNiCH3. A barrier for nickel insertion of 40.7 kJ/mol is found and its origin is discussed. The insertion is exothermic by 34.0 kJ/mol. From the potential energy surface at the transition state and the dissociated state vibrational and rotational frequencies are obtained. Unimolecular and bimolecular transition state theory is used for the calculation of rate constants, sticking coefficients, and activation energies for the nickel insertion reaction as well as the nickel elimination reaction. Activation energies for nickel insertion in both CH4 and CD4 are small compared with oth...