You'll want an ample water source. The first inclination is to use a well, but a well can only hold 125kg of water, and takes 15 minutes to replenish.
I recommend a water storage solution. A good choice is the huge tub, because it holds 2250kg and the replenish enchant can be cast on it so that it refills with water. A container with a replenish cast of 50 will add .50kg of water every 30 seconds. Note that while a huge oil barrel can also hold 2250kg, it cannot be enchanted with replenish.
A smaller alternative to a huge tub is the large barrel, which can hold 250kg. It would take 9 large barrels to equal 2250kg of water storage.
If your settlement is near a natural water source, like a lake or the ocean, you can fill your water containers at the source, but this adds multiple steps to the process of making lye.
Ash is a natural byproduct of furnaces (forge, oven, campfire, smelter, etc.). While a furnace is burning fuel, ash will appear in the furnace's inventory. When ash reaches 6.4kg it will stop accumulating.
As you work at a furnace, drag ash to a container frequently to allow more ash to be made. If you get in the habit of moving ash you will have a large store of it for lye making.
Your inventory can have a maximum of 100 items. The number of items you are carrying will determine the number of ash you can add to your inventory. You can mitigate this issue by using a container in your inventory for the ash (explained below).
I recommend at least one mixing container. Two (one for water, one for ash) will save you the hassle of dealing with inventory limits. I recommend two cauldrons for maximum batch size, but you can use small barrels or any liquid container, they'll just create smaller batches of lye.
Lye can be stored in most any liquid container, but it does decay over time. I store my lye in huge oil barrels because they can hold 2250kg. If I am not going to be using it for a long time (over a year) I'll seal it in small barrels (with pegs), but I typically use it before it decays away.
| Container | Max kg | Number | Replenish Enchant? | Best Use |
|---|---|---|---|---|
| Huge Oil Barrel | 2250kg | 100 ash* | No | Lye storage |
| Huge Tub | 2250kg | 100 ash* | Yes | Water storage |
| Large Pottery Amphora | 275kg | 100 ash* | Yes | Lye/water storage, can be sealed |
| Large Barrel | 250kg | 100 ash* | Yes | Lye/water storage |
| Small Pottery Amphora | 112kg | 100 ash* | Yes | Lye/water storage, can be sealed |
| Cauldron | 64kg | 64 ash | Yes | Max batch lye crafting |
| Small Barrel | 45kg | 45 ash | Yes | Large batch lye crafting, lye/water storage (can be sealed with a peg to stop decay) |
| Small Bucket | 12kg | 12 ash | Yes | Small batch lye crafting |
* The maximum amount of ash that can be combined is 64 ash or 6.4kg, limiting the max batch size to 64kg.
| Name | Max kg |
|---|---|
| Huge Tub | 2250kg (if enchanted with Replenish) |
| Fountain | 1125kg |
| Well | 125kg |
Repeat the process to make as many batches as you need.
The process is the same as with cauldrons. The only difference is the small barrel holds 45kg water/45 ash vs the cauldron, resulting in 45kg of lye.
Using cauldrons yields 19kg more than small barrels each batch, which adds up. If you don't have cauldrons and/or are working on a smaller project, small barrels will do just fine.
When I'm making a lot of lye I'll bind a key to the create action using the Custom Actions mod so I don't have to use the right click menu. I then simply hover over the water (with the combined ash active; green) and press my craft key bind.
Here is my bind:
bind space "act 10073 hover"
I use a Combine key bind to speed up my workflow.
I use my Combine key bind whenever I need to combine a resource stack. It saves so much time.