Charcoal is an essential material for any blacksmith looking to use a Mount and Blade II: Bannerlord forge. Unfortunately, the material is not readily available after dismantling the Raiders or in the Trade Shop in town. You have to do a bit of homework to get it, but it's not hard once you figure out where you need to go.
To create charcoal in Bannerlord, all you need to do is talk to the merchant in town. From there, click on Misc. tab when trying to buy something from them. You should find a variety of food and equipment that they have for sale. The one you are looking for is hardwood, and you can usually buy it from most merchants who are in a big city. Buy as much as you can, then you are ready to create some charcoal.
With the hardwood in your inventory, return to the smithy and click on the refinement page. You can now refine the hardwood for charcoal, and it should be one charcoal for every two hardwoods you use in the process. You can freely use as much as you want to create charcoal, depending on your smithy stamina for the day. When you run out, you can choose to wait in town or run around the area, attack looters, or complete other tasks.
Charcoal is an essential material for those who wish to begin their blacksmithing journey in Bannerlord. Knowing the best way to get it is important, and the fastest way to do it is usually to talk to the merchant in your town. You can use this same process for many other materials in the game, so be on the lookout for them if you want to train as a blacksmith, and don't always freely sell everything in your inventory for quick cash. .