In this paper, a new process of using high grade ores, such as magnesite and water magnesium stone etc, to produce magnesium is proposed from the thermodynamic point of view. For the ores, the main component of calcined products is MgO. Considering the reaction activity, price and material stability, CaC2 is chosen as the reductant in the new process. Furthermore, the optimal reaction is determined as the reduction of MgO by CaC2 adding SiO2 based on the principle of Gibbs free energy. It is found that the initial reaction temperature is 947°C under ordinary pressure showing the reaction taking place without vacuum condition. Compared with the traditional silicothermic process, the new process is not only simple but also can achieve continuous production due to the thermal reduction under ordinary pressure, as a result that it is easy to industrial application in the present technological level and conditions.