M etallic chips formed during machining are generally recycled by melting and casting. This procedure results in oxidation of the materials and degradation of the material properties. Additionally, the aforementioned procedure requires high energy consumption and the emission of harmful gases. Additionally, these processes are inefficient and expensive (Gronostajski et al, 1997). It has been reported (Lazzaro and Vittori, 1992) that the process of melting aluminum alloy chips results in 10% burning and 10% slag formation. Additionally, the direct conversion of aluminum chips into compact metal results in 40% material savings, 26-31% energy savings and 16-60% labor savings (Chmura and Gronostajski, 2006). Solid state recycling is an effective and energy efficient process due to the prevention of oxidation compared with melting processes. Solid state recycling was first proposed by Nakanishi et al. (1995) for recycling magnesium alloy chips and scrap. Lee et al. (1995) and Liu et al. (2002) also conducted research on AZ91D and AZ80 magnesium alloys using solid state recycling. In