There are two types of magic in The Mistlands update. They are Blood Magic and Elemental Magic and each of them has a level. You can check the skill level at the bottom of the skill menu. You can also check in the magic menu which is the Blood one and which the elemental one is. The most common material in all of the magic is Eitr.
How to get started with the Magic:
The first thing that you need is Sap Extractor. Which requires Yggdrasil Wood, Black Metal Dvergr Extractor. You can get wood and metal from the Mistlands Easily. But you need to find the Dvergr Extractor which you can find from the NPC Dvergr Rouge. You can find them in the different camps in the Mistlands and when you find them you need to kill them. After that, you need to loot their area and you will get the extractor from the shining chest inside.
You will also get some other materials like soft tissue. After that, you need to find the big glowing Yggdrasil wood and place the extractor to get the sap. You also need to find the dungeons and the dungeons are full of enemies so you need to be fully geared up before exploring. You will find the black ores inside the dungeons which will unlock the Eitr Refinery and the Galdr Table all of which we need to use in the magical process.