Aluminum-nickel alloy powder (typically 48-50% Ni, balance Al) is primarily used as a precursor for Raney nickel catalysts. It is selectively leached with sodium hydroxide (NaOH) to remove aluminum, producing a highly porous and active nickel catalyst. Raney nickel is widely applied in catalytic hydrogenation reactions for pharmaceuticals, fine chemicals, and agrochemicals, as well as in petrochemical processes such as hydrotreating, desulfurization, and fat hardening.

Additionally, the alloy reacts exothermically with bases or water to generate hydrogen gas, useful in niche hydrogen production methods.

It also serves as a reactive component in pyrotechnics and as a reducing agent or master alloy in select metallurgical applications.