Market Trends: How the NEV Industry is Reshaping Demand for Electrical Steel

Global production and sales of new energy vehicles (NEVs) continue to rise. According to the China Association of Automobile Manufacturers, China produced 16.626 million NEVs in 2025, with a penetration rate exceeding 50%, making it a key driver of steel demand. In 2026, NEV sales in China are expected to surpass 19 million units, up about 15.2% year‑on‑year, with a penetration rate exceeding 50%.

The rapid growth of the NEV industry has generated significant demand for specialty steels. According to information released by Ansteel’s Economic Research and Development Institute, new core components such as battery packs and drive motors are driving demand for specialty steels, including high-strength steel and non-oriented silicon steel. The latest QYR research shows that the global market for non-oriented electrical steel in NEVs was approximately US3.22 billion in 2025 and is expected to reach US3.22billion in 2025 and is expected to reach US6.553 billion by 2032, representing a compound annual growth rate (CAGR) of 10.8% between 2026 and 2032.

In the Chinese market, high-grade non-oriented electrical steel production in 2025 reached approximately 4.938 million tons, accounting for 33.8% of total output – a 21% increase year‑on‑year. Among this, NEV‑specific electrical steel production reached about 1.468 million tons, up 24.7% year‑on‑year. Behind these numbers is a fundamental shift in the industry from "adequate" to "efficient".

Material Fundamentals: From "Rotating" to "Rotating Efficiently" – The Technical Rationale for Thin-Gauge Steel

In NEV drive motors, electrical steel is the core material for the stator and rotor laminations. Its performance directly determines motor efficiency, power density, and vehicle range. All electrical steels currently used in NEV drive motors are high‑grade non‑oriented electrical steels that must simultaneously offer high magnetic flux density, low core loss, and high strength.

Why is "thin" so critical? From a materials physics perspective, eddy current loss in electrical steel is proportional to the square of the sheet thickness. As noted by an official from Baoshan Iron & Steel, reducing silicon steel thickness from 0.5mm to 0.1mm reduces eddy current loss to 1/25 of its original value. This means that, under the same operating conditions, thinner electrical steel significantly reduces energy waste from eddy currents, directly translating into longer vehicle range.

Thus, non-oriented electrical steel for drive motors is rapidly moving toward thinner gauges. Leading companies have already launched ultra‑thin grades as thin as 0.10mm and 0.15mm. Research from POSCO confirms the same trend: the thinner the non‑oriented electrical steel, the higher the grade and the lower the core loss.

At the same time, the trend toward higher operating frequencies places additional demands on the core loss of thin-gauge materials. Because NEV drive motors operate in the medium‑to‑high frequency range for most of their duty cycle (both city and highway driving), core loss accounts for a major portion of total motor losses. Therefore, low high‑frequency core loss is essential for increasing range. Thin‑gauge materials offer a clear advantage in low core loss under medium‑to‑high frequency conditions.

Technical Breakthroughs: Significant Advances in Thin-Gauge Materials

In recent years, China has made notable breakthroughs in ultra‑thin non‑oriented electrical steel. In early 2025, Baoshan Iron & Steel globally launched its ultra‑thin, high‑strength non‑oriented silicon steel grade B10AHV900M, with a thickness of just 0.10mm and a core loss value of no more than 9 W/kg – the first product in the world to achieve this performance level. This material has been used in the "F‑Super Motor", which reaches a maximum speed of 31,000 rpm, setting a new speed record in the motor industry.

Shougang has also achieved remarkable results. According to the company, one out of every three NEVs in China uses electrical steel cores developed by Shougang. The company’s products now reach 0.10mm thickness, with yield strength exceeding 950 MPa – more than double that of ordinary steel.

In addition, Puyang Iron & Steel's Zhongpu Electromagnetic successfully trial‑produced its self‑developed 0.15mm grade 15PYWD1050 non‑oriented silicon steel, achieving a core loss of 9.21 W/kg and a magnetic flux density of 1.69 T – reaching world‑class levels. Wuhan Iron & Steel Qingshan Base has also built the world’s largest production base for high‑grade non‑oriented silicon steel, capable of producing 0.10mm thick material.

These achievements demonstrate that China is now internationally competitive in ultra‑thin, high‑grade non‑oriented electrical steel.

 Performance Comparison and Selection Guide for Thin-Gauge Electrical Steel

Different thicknesses of non‑oriented electrical steel have different performance characteristics and application focuses. The following is a comparison of common thicknesses and their typical performance features:

• 0.35mm (grade series ~35W, e.g., 35WW250, 35WW300) – Relatively low core loss, suitable for high‑speed, high‑efficiency drive motors.

• 0.50mm (grade series ~50W, e.g., 50WW470, 50WW600) – Balanced performance, suitable for some economy designs, balancing efficiency and cost.

• 0.25mm – A high‑performance intermediate thickness, offering excellent behavior at high frequencies.

• 0.20mm and below (ultra‑thin grades such as 20W/25W series,      including B10AHV900M) – Extremely low core loss, ideal for ultra‑high‑speed, ultra‑high‑power‑density drive motors, and a key direction for next‑generation motors.

General selection guideline: For maximum power density and high‑speed performance, prioritize ultra‑thin grades ≤0.25mm. If balancing efficiency against cost, consider more detailed grade selection within the 0.35mm and 0.50mm thickness ranges, based on motor design speed and target efficiency class. Final grade selection should also take into account specific motor design parameters, target efficiency level, and cost budget.

Thin‑Gauge Electrical Steel Selection Decision Table

Future Trends: Thinner, Higher Frequency, Stronger

Looking ahead, the technical evolution of thin‑gauge non‑oriented electrical steel will focus on three directions:

Even thinner gauges – Continuing breakthroughs from 0.25mm and 0.20mm down to 0.10mm and below. Industry research indicates that the development of non‑oriented electrical steel is focused on low high‑frequency core loss (≤4.00 W/kg), high magnetic flux density (≥1.68 T), high strength (≥500 MPa), and thin gauges (0.25–0.30mm).

Better high‑frequency performance – With the spread of 800V high‑voltage platforms and SiC power devices, drive motor operating frequencies continue to rise, placing higher demands on the control of high‑frequency core loss in electrical steel. Global leaders such as POSCO have launched targeted product series such as the low high‑frequency loss PNF series and the high‑strength, low‑loss PNX series.

Higher strength – Mechanical strength at high speeds is a key challenge for thin‑gauge materials. The industry is using microalloying, texture optimization, and other technical approaches to increase yield strength while reducing thickness, meeting the stringent strength requirements of high‑speed motor cores.

Ultra‑thin, high‑strength non‑oriented silicon steels such as Baosteel's B10AHV900M – just 0.10mm thick – have broken through the technical bottleneck that previously made it difficult to achieve both "ultra‑thin gauge" and "ultra‑high alloy". This has opened up entirely new performance ceilings for the motor industry. Looking forward, as technologies such as hairpin‑wound motors (expected to account for over 70% of the market in 2026) and 800V high‑voltage platforms continue to penetrate, demand for thin‑gauge, high‑grade electrical steel will be further unleashed.

Selection Recommendations and Considerations

When selecting thin‑gauge non‑oriented electrical steel for NEV drive motors, the following general principles apply:

1. Select thickness based on motor design speed – Higher speeds favor thinner materials to reduce high‑frequency eddy current loss. As a rule of thumb, motors with maximum speeds below 12,000 rpm can use 0.35mm; motors above 18,000 rpm should prioritize 0.25mm and below.

2. Evaluate high‑frequency core loss – Beyond the conventional P1.5/50 index, high‑frequency core loss values (e.g., P1.0/400) are more critical for EV motors and should be a key focus in material selection.

3. Consider strength requirements – High‑speed motors demand sufficient mechanical strength in the rotor core.  Ensure that the chosen material retains adequate yield strength after thinning.

4. Check coating quality – Thin‑gauge materials require higher coating uniformity and insulation performance. Confirm the supplier's coating process control capability during selection.

The rapid growth of the NEV market and the continuous tightening of efficiency standards are accelerating the evolution of the non‑oriented electrical steel industry toward thinner gauges and higher grades. A thorough understanding of the technical characteristics and application scenarios of different thickness materials is the key for drive motor manufacturers to achieve differentiated competitiveness and performance breakthroughs.

Shanghai Ruichao Industrial --Your Supply Chain Partner for High‑Performance Thin‑Gauge Electrical Steel