Material availability remains a critical limitation in advancing additive manufacturing (AM). The dependence on a narrow range of commercial powders often not optimized for Laser Powder Bed Fusion (PBF-LB/M) restricts process efficiency and materials innovation. This study investigates the feasibility of using in-house ultrasonic atomization systems (UA) to produce small-batch metal powders. Aluminium alloy chips, sourced from conventional machining, were used as feedstock in ultrasonic atomization systems (UA). The resulting powders were characterized for morphology, particle size distribution, and flowability. Their performance was compared against conventional gas-atomized powders in both virgin (V-GA) and reused (R-GA) conditions. Samples were fabricated to perform material characterization from a) V-GA, b) R-GA, and c) UA powder conditions using identical PBF-LB/M parameters and analysed for relative density. UA powder demonstrated high sphericity and minimal agglomeration, contributing to enhanced flowability and powder bed uniformity. However, a lower fine powder fraction was observed after sieving the UA powder batch. Fabricated UA samples exhibited minimal micro-porosity and fusion defects relative to those made from V-GA and R-GA powders, though all samples achieved relative densities > 99.3 %, with UA & V-GA samples exceeding 99.52 %. These findings highlight the potential of UA systems not only for producing high-quality metal powder but also for enabling the economic development of novel AM-specific alloys.