Recycled MgO–C lining bricks and 316L stainless steel are used to manufacture composite material for inert anode samples for aluminum electrolysis cell. The microstructure of the composite material is characterized after preoxidation thermal treatments at 800, 900, and 1000 °C as well as in its sintered state. Preoxidation (PO) process is designed to enhance the material's corrosion resistance in molten cryolite environments by developing robust Fe–Mg–O, Fe–Cr–O‐ containing phases. Analytical techniques including scanning electron microscopy, electron backscatter diffraction, and energy dispersive X‐ray spectrometry are applied to characterize the phase formation, revealing the potential of these composites for use as inert anodes in aluminum electrolysis cells. PO at 800 °C is not sufficient to form adequate protective oxide layers. Whereas, PO at 900 and 1000 °C leads to the formation of protective oxide layers containing Mg–O Fe–O halite‐like solid solutions and (Cr,Fe)3O4 spinel phase. Sample, preoxidized at 1000 °C is sealed in Mg–Fe–O spinel phase.