Novel manufacturing route for composite inert anodes containing 60:40 of 316 L stainless steel and MgO powder obtained from recycled MgO–C brick material has been developed and evaluated. After burnout of residual carbon from the recycled MgO–C powder, MgO and steel were granulated and pre-sintered in order to generate agglomerates of composite material acting as coarse grains within the composite material, and thus lowering the sintering-related shrinkage. The pre-sintered granules were mixed with raw steel and MgO powder in order to achieve a high particle packing and subsequently cold isostatically pressed in the form of electrodes. All manufactured anode samples were subjected to sintering at 1350 °C and pre-oxidation at different temperatures – 800 °C, 900 °C, and 1000 °C. Afterwards, mechanical and electrical properties of the manufactured electrodes were characterized. The results show that upcycling of the MgO–C material enables manufacturing of sophisticated electrode products, which can be applied in the aluminum industry.