The Forge is where Giblet will create new equipment for the Overlord. But resources and minions will have to be exchanged in order to get the equipment. What resources are required depend on the specific weapons or armour and the game.
In Overlord the forge required three different smelters in order to create the best equipment, which were the Steel Smelter, Durium Smelter, and the Arcanium Smelter. Minions can be sacrificed to the forge to improve your armour and weapons. Note that different minion types have different effects on equipment.
Note also that the player can only forge non-enchanted equipment of the three types of metals in the game (excludes e.g. Unique Items from moulds), but can upgrade them by sacrificing more minions.
Spoiler: To upgrade your equipment without sacrificing any minions, do the following. As you are upgrading or forging any given equipment, wait until the camera goes above the upgrade area. Before the minions actually come out, access the menu and exit the game. Then, reload your game. No minions have been sacrificed, but the armour is still upgraded (will not work with current patch).
The better the smelter you use the more expensive, but also more powerful your equipment becomes after a forge. The Steel Smelter produces the weakest, the Arcanium Smelter the most powerful weapons and armour.
It is up to you what minion types you use to imbue equipment. Note that you can upgrade your equipment at a later time by sacrificing more minions. The maximum number of minions you can imbue into a weapon or armour is shown below:
-The Steel smelter is found in the mellow hills workshop north-east of spree, You will need red's to collect this smelter as it is covered in flames. You will be met with small waves halflings wanting to prevent you from returning the smelter. It was used by halflings to forge their steel armor and weapons
-The Durium smelter is found in the under-streets(2) being guarded by zombies, formally used to create Durium equipment for the fallen paladins.
-The Arcanium smelter is found in the dwarven mines used by dwarves and heavily guarded by slugs, flamethrower dwarves and regular dwarves.
Mould Location Armour of Fire 7000 130 250 — 120 Golden Abyss Axe of Confusion 1500 100 — — 50 Mellow Hills Abyss Harvesting Helmet 4500 300 50 300 50 Heaven's Peak Abyss Mace of Doom 3000 — — 100 250 Evernight Abyss Sword of Life-Stealing 3000 100 50 — 100 Golden Abyss
See mould for details.
Differing from Overlord you no longer need to find smelters, but so-called Forge Stones. There are a total of three smelters in Overlord II base game: the 1st one in Nordberg, the 2nd in the Everlight Jungle, and the 3rd in the Empire Harbour. Two more can be obtained in the Battle Rock dlc after defeating the Empire General and the Phoenix.
Note: The first weapons and armour will be relatively weak but resource cheap, the more powerful equipment will take up significant resources, though.
The Smooth Slicer 500 10 — 10 — — — — The Mad Batter 750 — — 15 — — — — The Executioner 5000 5 — 100 — — — 1st The Scorcher 3000 15 — — 50 — — 1st Elemental Armour 7500 25 1 25 25 25 — 1st The Evil Eye 4000 20 — 25 25 25 — 1st The Berserker 6000 10 1 125 — — — 2nd The Warlock 4000 35 1 — — 25 — 2nd The Beast Master 5000 25 1 — — 50 — 2nd The Reaper 2000 10 3 50 50 50 50 3rd The Apocalyptor 7000 15 2 50 75 — — 3rd Infernal Armour 10000 50 3 100 50 50 50 3rd The Infernal Commander 6000 40 2 75 50 50 25 3rd The Stormbringer (Battle Rock dlc) 5000 30 — 50 — — 100 4th The Chopper (Battle Rock dlc) 6000 25 — 75 25 75 — 5th
In the second game you will need reds to power the forge which will give you 2 basic weapons the mad batter (a similar design of the old mace) and the smooth slicer (a very new version of a sword could be a scimitar sword.)