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The Born-Haber cycle is a conceptual tool used to analyze the formation of ionic compounds. It breaks down the overall process into a series of discrete steps, each with a known energy change. These steps typically include atomization of elements, ionization of atoms (requiring energy input for electron removal and releasing energy for electron affinity), and finally, the formation of a crystal lattice, which releases a significant amount of energy (lattice energy). By summing the energy changes of these steps, one can determine the overall energy change for the formation of the ionic compound from its constituent elements. This cycle helps explain why ionic compounds form and the magnitude of energy involved in their creation.

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