Ion implantation of O into Al and growth of Al(O) layers using electro-cyclotron resonance plasma and pulsed laser depositions produce composite alloys with a high density of nanometer-size oxide precipitates in an Al matrix. The precipitates impart high strength to the alloy and reduced adhesion during sliding contact, while electrical conductivity and ductility are retained. Implantation of N into Al produces similar microstructures and mechanical properties. The athermal energies of deposited atoms are a key factor in achieving these properties.