With recycling and reuse in mind, this study explores the possibility of the utilization of waste generated during the plasma cutting operations to produce aluminum products in a commercial friction material formulation for car braking applications. The as-received waste, analyzed in the form of a powder, was subjected to various characterization techniques to obtain its composition and phase constituents. The friction, wear, and emission analyses were organized in two ways: the first part focused on the selection of the most suitable waste content in the friction material formulation—10, 15, and 20 wt.%—tested in the form of pins, using a pin-on-disc tribometer. The second part evaluated the most suitable content in the formulation in the form of coupons on a subscale dynamometer to comprehend its friction and emission characteristics in a more complex scenario. Through the pin-on-disc analysis, it was seen that the 10 wt.% of waste in the formulation provided permissible friction and wear behavior, and similar emission magnitude and secondary plateau characteristics were seen, as compared to the reference composition. Similar results were recorded on the subscale dynamometer at mild braking conditions. At ‘severe’ testing conditions, a different trend was observed. Through this analysis, the possibility of the addition of this kind of waste in friction material composition has been evaluated deeply, paving a path for further analysis and possible implementation.