Purpose. The purpose of the research is to substantiate the possibility of replacing existing MgO bricks with the MgO-C bricks due to their resistance to the slag aggressiveness of the electric furnace and the Si content in the resulting metal, which can have a positive effect on reducing the consumption of refractory materials. Methods. This research will be presented as the results of theoretical and experimental data determining the dependence of the electric furnace on the type of refractory material, walls construction, operating parameters and the electric furnace lining, that are expected to have a major impact on the cost output of production process. Findings. Based on the presented results, it has been revealed that MgO-C bricks are more effective in terms of preventing the furnace damage depending on refractory materials. Therefore, to optimize the production process, it is recommended to improve the composition of melted metal and slag, as well as to strengthen the control of the process parameters. Originality. Laboratory analyses are conducted in specialized laboratories, and the presented data have been obtained through the use of devices and equipment required for experimental research. Practical implications. The refractory materials are one of the main indicators of technical performance and production costs at NewCo Ferronickel in Kosovo. Therefore, the higher performance of the refractory lining will have a positive effect on the furnace durability and the quality of the final product.