Plasma technology has emerged as a very helpful tool in a variety of sectors, notably metallurgy. Innovators and scientists are focused on the problem of finding a more ecologically friendly way of extracting titanium and iron metal from natural ilmenite concentrate for industrial applications. A direct current (DC) plasma torch operating at atmospheric pressure is used in this study to describe a decarbonization process for reducing an ilmenite concentrate. The plasma gases employed in this torch are CO2 and CH4. The molar ratio of the gases may be crucial for achieving a satisfactory reduction of the ilmenite concentrate. As a result, two molar ratios for CO2/CH4 have been chosen: 1:1 and 2:1. During torch operation, a thin layer of graphite is formed on the cathode to establish a protective barrier, prolonging the cathode’s life. The material was analyzed using X-ray diffraction (XRD) and scanning electron microscopy with energy dispersive spectroscopy (SEM-EDS). The output gases were analyzed using mass spectrometry (MS). In addition, a thermodynamic analysis was performed to predict the development of thermodynamically stable phases. An economic assessment (including capital expenditures (CAPEX) and operating expenditures (OPEX)) and a carbon balance were developed with the feasibility of the piloting in mind.