A method of in situ formation of an aluminum carbon nanotube composite material and an induction motor component produced with such composite. The method includes forming an aluminum-based matrix by mixing a catalyst precursor with an aluminum powder such that a colloidal compound is formed that is subsequently sintered to leave a catalytically-active material formed on the surface of the aluminum powder. A carbon-containing gas is introduced to the composite catalyst that includes aluminum and the catalytic metal so that carbon nanotube reinforcements are grown on the aluminum-based matrix with the assistance of the catalytically-active metal. Additional mechanical processing steps may also include pressurizing, sintering and cold-rolling the aluminum carbon nanotube composite material.