Against the backdrop of escalating global carbon emissions, the steel industry urgently requires a transition toward green and low-carbon practices. As a conditionally carbon-neutral renewable energy source, biochar holds potential for replacing traditional fossil-based reducing agents. This study aims to investigate the mechanism and performance differences between biochar (wood char, bamboo char) and conventional reducing agents (semi-coke, coke powder, anthracite) in the direct reduction process of carbon-bearing briquettes. Through reduction experiments simulating rotary kiln conditions, combined with analysis of reducing agent gasification characteristics, carbon-to-oxygen (C/O) molar ratio control, X-ray diffraction (XRD), and microstructural examination, the high-temperature behavior of different reducing agents was systematically evaluated. Results indicate that biochar exhibits superior gasification reactivity due to its high specific surface area and developed pore structure: wood char and bamboo char show significantly enhanced reaction rates above 1073 K, approaching complete conversion at 1173 K. In contrast, anthracite and coke powder, characterized by dense structures and low specific surface areas, failed to achieve complete gasification even at 1273 K. Pellets containing bamboo char achieved the highest metallization rate (90.16%) after calcination at 1373 K. The compressive strength of the pellets first decreased and then increased with rising temperature, consistent with the trend in metallization rate. The mechanism analysis indicates that the high reactivity and porous structure of biochar promote rapid CO diffusion and synergistic gas–solid reactions, significantly accelerating the reduction of iron oxides and the formation of metallic iron.