I've had horses react like that in the past. It's scared the bejesus out of me the first time one barreled straight at me with it's teeth inches from me. Very scary.
I don't know your abilities, so please do what you feel is safest for yourself. No horse is worth getting hurt (and you can get seriously hurt).
What I did, was to start from the very basics again. I had a longer lead rope attached to his halter and we practiced moving out of my space for 10 minutes every day. I'm only 4'11'', so most horses ignore me when I walk toward them.
Stand slightly to the side of the horses head, do not stand directly in front of the horse. When asking the horse to back up, include the word "Back" so you can associate the word with the desired response.
What works is to raise my hands to his head level and shake the rope. If no backward movement, then I swing the rope in front of me. If they still won't back, I'll let the rope whack them in the head. This caused a bit of aggression from some of the horses I've worked with, so be prepared for an unexpected response the first time. Some just back without an issue, so it's hard to say what might occur. Keep the pressure on for the horse to move back though.... and as soon as they give you a step, praise and let them stand there a moment. Every time the horse moves out of your space, praise and release all pressure to back. As he gets better, ask for a few more steps, and a few more, until he can give you a good 5-10 steps back without being resistant.
I usually use a chain over the nose to gain a bit more leverage on difficult horses (slid through nearest ring, over nose and through far ring, then up the cheek strap to attach to the cheek ring toward the crown.).
Basically, anything you can do to get that horse's feet to move AWAY from you. Move the horse backward, make him move his shoulders away from you, ask him to move his butt away from you (stay out of kicking range). Do this every single day, 5-10 minute sessions, for a a couple of months. Once he's good with moving away from you and respecting your space, THEN you can try the lunge line again.
Make the horse pay attention to where you are and to get out of your way no matter what. He has to move away from you. Always. If he steps one foot toward you, back him up, or send him out. Do whatever is necessary to make yourself seem like the biggest, baddest, mo-fo in the entire world so that your horse thinks "crap, she wants to stand where I am then I BETTER move away". Growl, swing the rope at him (he'll live if it whacks him in the face, he shouldn't have gotten in your way), pop him with the rope on the chest or shoulder (depending on where you want him to move), use your arms above your head to increase your height, use your chain on his nose if need be (don't use it as the 'go to method', just to reinforce your body motion).
What you're trying to teach him is that YOU are alpha mare, and he is lower on the pecking order. Right now, he's alpha and he's trying to teach you your place in the herd (beneath him).
It doesn't take much force, but you do have to make yourself appear aggressive, and bigger than life. Use the rope as a tool to increase your size, use your arms, reinforce your commands with the chain if need be. If he rears, let him rear and when he comes back down then really get after him for it (you've lost all control the moment he rears, and you have none until his feet touch the ground again).
You need some good books on re-training horses. Maybe a few video's. I'll see if I can find some video's....
Get him to respect your space, and your lunging sessions will improve. Right now, you're attempting to drive the horse forward around you and your horse is laughing at you. He doesn't respect your space, he doesn't respect you. Don't even try lunging until he's good at moving away from you at all times. Then you can try lunging again.