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These materials are gotten from salvaging Legendary gear from the Blacksmith.
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The cost of upgrading will also cost some other materials, including Iron, Leather, and Veiled Crystals, with the most notable ones being Baleful Fragments, Abstruse Sigils, and Coiling Wards. The cost between base Legendaries, Sacred, and Ancestral gear is all the same, except for a slightly higher gold cost, so feel free to upgrade your best pieces as you pick them up as Forgotten Souls are used for upgrades and enchants. Upgrading Sacred Gear and Ancestral Gear is much the same as normal Rare/Legendary Gear up until the final level. Once you have a handful of Forgotten Souls, you'll finally be able to Upgrade your gear to level 5.
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Check out our page on Helltides to learn more about this endgame world event and how to most efficiently farm it to get as many upgrades and materials as possible!
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