New composite with core-shell structure based on magnesium hydride and finely dispersed aluminum powder with aluminum oxide shell was mechanically synthesized. We used magnesium chips to produce magnesium hydride and aluminum wire after exploitation to produce nano-sized aluminum powder. The beginning of the hydrogen release from composite occurred at the temperature of 117°C. The maximum desorption temperature from the MgH₂-EEWAl composite (10 wt.%) is 336°C compared to pure magnesium hydride – 417°C. The mass content of hydrogen in the composite is 5.5 wt.%. The positive effect of aluminum powder produced by the electric explosion of wires method on reducing the activation energy of desorption was demonstrated. Calculations showed that the activation energy of desorption for the composite is 106±1 kJ/mol, compared with pure magnesium hydride, whose activation energy was 155±2 kJ/mol. The results obtained make it possible to expand the possibility of using magnesium and aluminum waste for hydrogen energy.