The aerospace and automotive industries are seeking advanced materials with low weight yet high strength and durability. Aluminum and magnesium-based metal matrix composites with ceramic micro-and nano-reinforcements promise the desirable properties. However, larger surface-area-to-volume ratio in micro-and especially nanoparticles gives rise to van der Waals and adhesion forces that cause the particles to agglomerate in clusters. Such clusters lead to adverse effects on final properties, no longer acting as dislocation anchors but instead becoming defects. Also, agglomeration causes the particle distribution to become uneven, leading to inconsistent properties. To break up clusters, ultrasonic processing may be used via an immersed sonotrode, or alternatively via electromagnetic vibration. This paper combines a fundamental study of acoustic cavitation in liquid aluminum with a study of the interaction forces causing particles to agglomerate, as well as mechanisms of cluster breakup. A non-linear acoustic cavitation model utilizing pressure waves produced by an immersed horn is presented, and then applied to cavitation in liquid aluminum. Physical quantities related to fluid flow and quantities specific to the cavitation solver are passed to a discrete element method particles model. The coupled system is then used for a detailed study of clusters' breakup by cavitation.