A method for the energy efficient production of metals and alloys by carbothermic reduction of minerals and ores in electric reduction reactors is disclosed. The method includes conveying a wood containing material to at least one pyrolysis step for producing charcoal; conveying the produced charcoal, possibly other carbon-containing reduction materials and metal containing raw materials to the at least one reactor for producing metal or alloy; conveying off-gas from the at least one pyrolysis step and off-gas from the at least one reactor to at least one energy recovery step.