The manufacturing sector faces increasing pressure to improve environmental sustainability due to its high energy and resource demands. Key strategies include waste reduction and scrap material recycling. Powder-based additive manufacturing (AM) is inherently more resource-efficient than traditional methods, primarily due to lower material losses. However, its sustainability must be assessed across the full material lifecycle. In particular, gas-atomized metal powder production—the main feedstock for AM—is energy-intensive and heavily reliant on virgin materials. This thesis investigates the recycling of AA5183 and AA4047 aluminium alloy chips, generated during rod peeling prior to cold drawing in welding wire production. The chips were compacted and gas atomized with argon using a Vacuum Inert Gas Atomizer (VIGA) in a close-coupled configuration.