The method of production of microcrystalline ittrium powder, consisting in crushing of an ittrium sponge received at lithium thermal reduction of ittrium chloride is presented. In the beginning spend ittrium chloride reduction by lithium and then vacuum separation of the received reacting mass for separation of slag and the lithium waste from ittrium sponge. The trial plant for lithium thermal reduction of ittrium from anhydrous chlorides is presented. Influence of temperature and time of vacuum separation for the concentration of technological impurity in an ittrium sponge is investigated. The described method allows to receive an ittrium sponge of the raised cleanliness with the minimum size of particles 200 nanometers.