A method of producing metal chlorides is disclosed in which chlorine gas is introduced into liquid Cd. CdCl.sub.2 salt is floating on the liquid Cd and as more liquid CdCl.sub.2 is formed it separates from the liquid Cd metal and dissolves in the salt. The salt with the CdCl.sub.2 dissolved therein contacts a metal which reacts with CdCl.sub.2 to form a metal chloride, forming a mixture of metal chloride and CdCl.sub.2. After separation of bulk Cd from the salt, by gravitational means, the metal chloride is obtained by distillation which removes CdCl.sub.2 and any Cd dissolved in the metal chloride.