Lignin-rich starting material is suspended in a first medium, which is acidic and aqueous, to form a aqueous acidic suspension, which is heated and allowed to form two continuous phases, a thermoplastic lignin phase and an aqueous phase. The thermoplastic lignin phase is separated from the aqueous phase and passed through a shape giving process into a second medium which is at a temperature lower than that of the thermoplastic lignin phase and in which the thermoplastic lignin phase is essentially insoluble. Solid lignin formed in the second medium is recovered.