A swarf of aluminum alloy with high corrosion resistance and ductility was successfully converted into fine hydro reactive powders via ball milling with silver powder and either lithium chloride or gallium. The latter substances significantly intensified particle size reduction, while silver formed ‘cathodic’ sites (Ag, Ag2Al), promoting Al corrosion in aqueous saline solutions with hydrogen generation. The diffraction patterns, microphotographs, and elemental analysis results demonstrated partial aluminum oxidation in the samples and their contamination with tungsten carbide from milling balls. Those factors were responsible for obtaining lower hydrogen yields than expected. For AlCl3 solution at 60 °C, Al–LiCl–Ag, Al–LiCl, Al–Ga–Ag, and Al–Ga composites delivered (84.6 ± 0.2), (86.8 ± 1.4), (80.2 ± 0.5), and (76.7 ± 0.7)% of the expected hydrogen, respectively. Modification with Ag promoted Al oxidation, thus providing higher hydrogen evolution rates. The samples with Ag were tested in a CaCl2 solution as well, for which the reaction proceeded much more slowly. At a higher temperature (80 °C) after 3 h of experiment, the corresponding hydrogen yields for Al–LiCl–Ag and Al–Ga–Ag powders were (46.7 ± 2.1) and (31.8 ± 1.9)%. The tested Ag-modified composite powders were considered promising for hydrogen generation and had the potential for further improvement to deliver higher hydrogen yields.