The increasing demand for sustainable manufacturing has prompted the development of innovative approaches to upcycle and more effectively utilize recovered materials for sustainable value creation. This study involves two solid-state processes, Friction Extrusion and Additive Friction Stir Deposition (AFSD), for producing deposits from post-consumer aluminum waste, which can subsequently be utilized in the creation of new aluminum products. The mechanical performance of this upcycling method is evaluated to establish a foundation for future research to facilitate Circular Economy (CE) with sustainability benefits. Recovered material is processed through this hybrid approach to demonstrate its practical feasibility. Also, metal powders are incorporated to assess the alloying capability of this method. The properties of both the as-recovered and processed materials are investigated to evaluate the change in material characteristics throughout the method. The goal of this method is to improve material efficiency and reduce energy consumption by avoiding remelting recovered materials and addressing efficiency losses associated with existing solid-state recycling processes. This approach has the potential to lower energy usage and minimize waste throughout the recycling pathway, thereby aligning with CE principles by enabling reintegration of scrap/waste and recovered materials from end-of-life (EoL) products into the value chain as higher-value products.