In the quest to produce high-strength steel, the preparation technology for vanadium–nitrogen alloy (VN) was refined through thermodynamic analysis, employing it as an additive to enhance the strength and hardness of microalloyed steel. Changes in the Gibbs free energies associated with the reactions between vanadium oxides and carbon in a nitrogen atmosphere were meticulously calculated and examined. This study explored the effects of the carbon to V2O5 ratio, the nitrogen to V2O5 ratio, and the pressure on the production of VN and CO at various temperatures. The results indicate that the productivity of VN is highest under conditions of approximately 1000 °C, a C:N2:V2O5 ratio of 10:8:1, and a pressure of 1 bar. Under these conditions, VN constitutes approximately 70% of solid products, with a conversion rate of around 67.92%. CO accounts for approximately 38.17% of the exhaust gas, resulting in a yield of approximately 45.28%. The CO generated can be utilized as fuel in the production of iron in blast furnaces, providing an opportunity for secondary use of resources.