At present, the titanium resource from vanadium-titanium magnetite (VTM) has not been used very effectively. With the aim of addressing this urgent problem, the titania slag with over 40 wt% TiO2 was obtained from VTM through gaseous reduction and melting separation in the previous work. In this study, the aluminothermic reduction for the ferrotitanium alloy production was conducted in order to develop a new utilization way for the titanium resource from VTM. CaO and Fe2O3 are extra added to ensure the slag fluidity, alloy quality, and sufficient physical heat. And the addition ratios of Al are optimized by the thermodynamic calculation. At last, the ferrotitanium alloy with 30.5 wt% Ti, 8.4 wt% Al, 3.2 wt% Si content is successfully prepared. However, the macro analysis indicates that some alloy particles with different contents are dispersedly distributed among the slag, and the slag consists of three different phases. It is mainly associated with the reaction intensity and thermodynamic stability, which is detailedly discussed in this paper as well.