The high power and low frequency electroacoustic transducer plays a very important role in the underground acoustic telemetry system used for petroleum industry. How to realize electroacoustic conversion technology with the giant magnetostrictive materials was studied in this paper. The principles and methods of how to design it were proposed and the experimental verification was achieved. Results show that the electroacoustic transducer based on giant magnetostrictive materials features high-power and low-frequency output, high conversion efficiency, high temperature resistance, and excellent performance. It can completely meet the needs of the downhole acoustic telemetry system.