In-space manufacturing of polymer feedstocks has already been shown using the widely investigated filament extrusion additive manufacturing (AM) technology. Yet, polymers are only a small piece of the puzzle, and there is a growing demand to locally source metal and ceramic parts. In this manuscript, we propose a cost-effective method for in-orbit manufacturing of metal and ceramic multi-material components using highly packed powdered filaments, which need to be shaped, debinded, and sintered in sequential steps. Traditional debinding and sintering of material extrusion (MEX) AM parts are known to be time-consuming and require complex post-processing, often involving toxic debinding agents. To overcome this, a low-intensity infrared diode laser and an induction heater are coupled to a hybrid MEX system to allow full processing in situ, within the same volume. The results show that the main binder matrix can be removed across the 3D volume of the part via laser ablation of the polymeric mass, even for multi-material metal–ceramic composites. The sintered geometries further densify efficiently within the bulk due to the high-energy concentration of the induction sintering treatment, providing short processing times. Debinding and sintering locally, in the same machine, offer a simple and effective way to produce space hardware in situ, avoiding the use of consumables or part transportation to bulky equipment.