Abstract An electric arc furnace is mainly employed to produce high titania slag, although impurities could not be removed through this process, making the production of titania pigment through chlorination difficult. Removal of impurities is crucial to fully utilize low-grade ilmenite, especially the Panzhihua ilmenite concentrate obtained in China. This work proposes a new process to maximize Panzhihua titanium resources. Panzhihua ilmenite concentrate was reduced in a vacuum furnace, and residual slag and condensations were subsequently obtained. When the temperature exceeded 1500 °C and the carbon content exceeded 12%, Mg and Si impurities were removed, entered the gas phase, and formed ferrosilicon alloy. Finally, high-grade titania slag was obtained.