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The Arc Furnace is a multi-block machine added by the Immersive Engineering mod. It uses large amounts of energy (Redstone Flux) to rapidly convert ores into dusts. The dust can then be smelted in a furnace. It also has other functionality - it can create Steel, and many other alloys, including alloys from Ender IO.
To use it, Redstone Flux must be input through one of three black power points. Like many other Immersive Engineering multi-block machines, it can be turned on or off using the redstone input panel (the red dot) on its front side.
It has a GUI, with 12 input slots, 4 additional (alloying) slots and 7 output slots. To run, three Graphite Electrodes need to be inserted into the machine manually. An Arc Furnace can smelt approximately 500 items before the electrodes wear out and need replacing.
Arc Furnace has no known uses in crafting.