Vanadium-containing steels are smelted in electric arc furnaces with the use of iron-rich pellets. Special technology for heat treatment of pellets was developed. The technology makes it possible to produce iron-rich pellets from initial pellets. Optimal conditions of firing the initial pellets have been determined. Structural and phase transformations have been studied. Conditions of strengthening the pellets have been found. Efficient reduction of the strengthened pellets is provided.