A reactive crystallization method for the synthesis of lanthanum hydroxychloride (La(OH)2Cl) was developed to provide a new low-carbon route for the purification of rare earth elements in hydrometallurgy. The synthetic method reported herein represents a unique low-temperature route, short preparation time and inexpensive materials compared with previous methods, thus making it promising for industrial applications. The key factors controlling the product's phase were determined using single factor tests involving temperature, concentration of NH4Cl in the base solution and the molar ratio of NH4OH/La3+ added per minute into the base solution. Otherwise, the outcome is lanthanum hydroxide (La(OH)3). Subsequently, the synthesized products were characterized by employing X-ray diffraction (XRD), Fourier transform infrared (FT-IR) spectroscopy, transmission electron microscopy (TEM), and energy dispersive spectroscopy (EDS). Finally, the thermal decomposition behavior of La(OH)2Cl was assessed using thermogravimetry (TG) and differential scanning calorimetry (DSC). Lanthanum oxychloride (LaClO) was obtained at about 360 °C. The thermal transformation from LaClO to La2O3 started at 400 °C and was a slow oxidation process. Pure La2O3 could be obtained when the temperature increased to 1500 °C.