The thermit reaction typically involves the reaction between iron oxide (Fe₂O₃) and aluminium metal (Al) to produce molten iron and aluminium oxide (Al₂O₃). The balanced equation is Fe₂O₃ + 2 Al → 2 Fe + Al₂O₃. In this reaction, aluminium reduces iron oxide to iron by taking oxygen away from it. Therefore, aluminium is oxidized (gains oxygen) and acts as the reducing agent.