In the thermite reaction, aluminium powder is mixed with iron(III) oxide and ignited. The reaction produces molten iron and aluminium oxide. This reaction is best described as

In the thermite reaction (2Al + Fe₂O₃ → Al₂O₃ + 2Fe), aluminium displaces iron from its oxide because aluminium is higher in the reactivity series than iron. This is a redox displacement reaction where the more reactive metal (Al) reduces the oxide of the less reactive metal (Fe). It demonstrates the relative positions of the two metals in the activity series.