Abstract: Aluminum alloy atomized powder containing 4 to 12% iron and 1 to 7% cerium or other rare earth metal, when properly compacted and shaped into a useful article, exhibits very high strength at relatively high temperatures. The iron content exceeds the cerium or rare earth metal content, and the powder may contain refractory elements such as W, Mo and others. The powder is produced by atomizing alloyed molten aluminum, preferably in a nonoxidizing atmosphere, and is compacted to a density approaching 100% under controlled conditions including controlled temperature conditions. The alloy may be subsequently shaped by conventional forging, extruding or rolling processes.