The iron and steel industry in China is facing challenges with the depletion of traditional high-grade iron ore resources, leading to a shift towards the development of low-grade refractory ores for sustainable steel production. The Bayan Obo region, known for its vast mineral resources, particularly low-grade polymetallic ore, presents difficulties in processing due to its mineral composition and weathering effects over time. Efforts to recover valuable minerals from solid residues have been hindered by ineffective traditional mineral processing methods, resulting in resource waste and environmental degradation. The introduction of hydrogen-based mineral phase transformation (HMPT) technology offers a promising solution to these challenges. By using hydrogen-rich gas as a reducing agent, HMPT technology lowers reduction temperature and energy consumption, reduces CO2 emissions, and enhances environmental and resource recovery benefits. The study aims to validate the industrial application of HMPT technology by processing low-grade polymetallic ore through a pilot-scale system and optimizing key parameters. Results indicate the successful processing of the ore with improved reliability and potential for widespread use in the industry. This innovative technology offers a clean and efficient alternative to carbon-based methods, aligning with global initiatives for clean production and resource sustainability in the iron and steel sector.