Among the various methods used to produce metal fibers, one efficient approach involves processing metal staple fibers (type 1.4113) through a steel wool or planing process. In this method, thick metal wire is pulled through a toothed profiled die to create thin, sharp-edged, and flexible wire shavings. A process chain for spinning such planed metal staple fibers into metal spun yarns, including stretch breaking, drawing, flyer and ring spinning, has already been developed. However, the inherent low elongation and brittle behavior of the material often result in fiber damage during the multiple drawing stages, leading to the formation of short fibers and significant dust in the products. To address these challenges, a new single-stage short staple spinning process has been developed to minimize fiber damage and enable the flexible production of high-performance 100% metal staple spun yarn. The spinning module incorporates a delivery, non-crimping, twisting, and winding units, all of which are modularly designed, manufactured, and driven by individual servo motors. Following the commissioning of the spinning module, uniform and reproducible metal-spun yarn with defined properties and scalable yarn counts (1000–2500 tex) was produced and thoroughly characterized to understand the potential of metal-spun yarn. This study presents the potential of the new spinning process to revolutionize metal fiber production, providing a reliable and high quality solution for demanding industrial applications such as automotive brake pads, high-efficiency burners, electromagnetic shielding, heat pipes, cut-resistant gloves, etc.