Two processes for use of Panzhihua ilmenite according to the features of the ilmenite and energy resources of Panzhihua area are described:(1) titanium dioxide is produced by sulphate process from the ilmenite or titania slag made from smelting the ilmenite by elctric-arc furnace method; (2) titanium dioxide or sponge titanium is produced by chloride process form synthetic rutile made from the ilmenite by hydrochloric acid leaching method. The advantages and disadvantages between the two processes are also presented.