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Abstract The in-flight reduction of iron ore particles using an atmospheric pressure hydrogen plasma is investigated. Iron ore particles with a size less than 75 µm are aerosolized and carried with an argon-hydrogen (90%–10%) gas mixture through an atmospheric pressure microwave plasma. After the treatment, the collected particles are observed to follow three distinct populations: (i) fully reduced nanoparticles, (ii) partially reduced spheres, larger than the feedstock, and (iii) partially melted, partly reduced agglomerates. A model is developed to explain the possible mechanism for the origin of the three populations. The nanoparticles (i) are found to be likely formed from the previously evaporated material whereas the particles (ii) and (iii) result from the partial/complete melting of the particles and agglomerates flowing through the reactor. The gas temperature is estimated to be more than 2000 K, which enables the rapid melting, evaporation, and reduction of these particles within residence times of only a few 10 ms.