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A novel method was developed to produce AlV55 alloy through reducing impurities content and component segregation with electrode assisted heating technology. This new process synergistically integrates a few low-cost process techniques, including granulation, mixing, and electro-heating to produce AlV55 alloy. During the heating process, the CaO is used as an additive in the raw materials. The uniform of AlV55 alloy composition and low impurities content are effectively controlled by this process. The analysis results show that Si (0.13 wt%), Fe (0.22 wt%), N (0.007 wt%), C (0.078 wt%), and O (0.051 wt%) impurities in the AlV55 products were reduced, which met the commercial standard (TS/T 579-2014), and V content ranged from 57.5 to 58.5 wt% when the Al/V2O5 mass ratio was 0.94:1. This method can realize the controllability of the reaction process and is suitable for large-scale industrial production.