Additive friction stir depositionAdditive friction stir deposition (AFSD) uses a non-consumable rotating tool to generate frictional heat and plastic deformation, allowing metals to be deposited layer by layer onto a substrate without melting. This solid-state process offers a unique opportunity for upcycling metallic chips produced as waste from machining operations to produce feedstock bars due to its high degree of tolerance for feed material quality. Accordingly, this work presents a chip compactor design integrated into a hydraulic press and comprising a die set and ram carriage assembly. The application of controlled compressive mechanical forces under both cold and warm working conditions enables the compactor system to produce aluminumAluminum (Al 6061) feedstock bars from machining chips with 86–100% density relative to wrought Al 6061. Compacted bars were also obtained using shredded Al can waste and a composite mixture of 25% low-cost SiCSiC powder with machined Al chips. Optical microscopy characterizationCharacterization results of these compacted bars are presented here. These upcycled compacted bars are then used as feedstock material for AFSD, contributing towards achieving sustainabilitySustainability in additive manufacturingAdditive manufacturing in general by adopting a circular economyCircular economy model.