Sponge iron is an intermediate product from direct reduction ironmaking (DRI) process, which has much lower carbon emission compared with conventional blast furnace ironmaking. In currently steel industry process, sponge iron is fed into electric arc furnace (EAF) to be melted, purified, followed with addition of alloying elements, including carbon, to make steels. We demonstrate the process of directly making Fe-based alloys from sponge iron without adding greenhouse gas-emitting ingredient, namely carbon and its associated products. In addition, such process will eliminate the energy-intensive melting step in steelmaking, saving energy and indirectly reduce emission. Such process also takes advantage of wastes in steelmaking process, namely SiO2 and Al2O3 impurities contained in iron ore, and incorporates them as strengthening phases in so-produced Fe-based alloys.