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Yes, the Space Shuttle used a slurry mix of aluminum and a binding agent in the big white solid boosters. The reason is that it provides insanely high thrust.
You don't want heavy atoms in your exhaust stream (except when you do - it gets complicated with electric thrusters), you actually want very light atoms. Light atoms can be accelerated by the combustion of the fuel to much higher velocities than heavier atoms, which helps produce both higher thrust and high efficiency. From this prospective, aluminum is very bad compared to the hydrogen that the Space Shuttle Main Engines burn (those are the ones on the back of the orbiter itself).
However, light atoms tend to come in fluids that aren't very dense. So to burn enough of these fluids to make the thrust you need, you have to pump and compress it into the engine. There is a limit to how fast you can reasonably pump and compress these fluids which means that the larger your engine, the more complicated and failure prone it gets.
Ideally, the space shuttle would have used massive (think Saturn V size) liquid engines to get to space. But because the fluid they burn is hydrogen (easily the least dense fluid in rocketry) they couldn't build engines big enough for the job.
So the compromise was to use these massive solid boosters to provide the thrust (I think over 90% of total lift-off thrust) to get the thing in the air. Then, after they burn out, the shuttle had burned enough fuel that it no longer needed as much thrust and the hydrogen engines could take over the full load and the solid boosters fall off.
Solid fuels have bad efficiency (big, heavy atoms that are not as energetic as many liquids) but they provide a huge amount of thrust because they burn along their entire length all at once and they don't require pumps to do that. Aluminum is very reactive with oxygen so it burns well. It also readily combines with the binding agents that turn it into the actual propellant mix, so again it's good on that front. You have to have non-burning binding elements in the mix in order to be able to form the fuel into a solid block instead of a loose powder mix and because they keep it from getting too explodey. Loose aluminum dust would blow up if you looked at it cross; loose aluminum in a binder is much more stable. It is a trade off but its unavoidable.