Abstract: The object is to provide a method of degassing or solidifying an aluminum alloy powder by utilizing an induction heating as a degassing means in a step of forming and solidifying an aluminum powder or aluminum alloy powder, whereby the disadvantages of the prior art can be overcome. The feature of the present invention consists in preforming an aluminum powder, aluminum alloy powder or aluminum composite alloy powder or mixed powders thereof with non-metallic grains to give a specific electric resistance of at most 0.2.OMEGA.cm, subjecting the preform directly to induction heating in an atmosphere at normal pressure, temperature-raising to 400.degree. to 600.degree. C. at a temperature gradient of at least 0.4.degree. C./sec in a temperature range of at least 300.degree. C. and removing heat-decomposable volatile components to obtain a hydrogen content of at most 10 ppm.