A new method was developed to synthesize the hydrogen storage alloy powders directly from the oxide mixtures. Calcium co-reduction and the molten CaCl2 was applied to reduce the oxides and to form the target alloy simultaneously. As the fundamental confirmation, the binary Ti-V solid solution and the intermetallic compound TiCr2 were prepared. Their oxygen content was controlled below 0.5mass percent and the compositional variation of metallic elements was within 5mol percent from the desired compositions. These alloy powders could absorb hydrogen after the normal activation treatment.