Top 10 Companies in the Global Electrical Steel for Electric Vehicle Market (2026): Market Leaders Powering EV Innovation

MARKET INSIGHTS

Global electrical steel for electric vehicle market size was valued at USD 1,730 million in 2025 and is projected to reach USD 3,820 million by 2034, growing at a CAGR of 10.40% during the forecast period (2025-2034). This significant growth is driven by the accelerating transition toward electric mobility and stringent government regulations promoting sustainable transportation solutions.

Electrical steel, also known as silicon steel, is a specialty steel tailored for magnetic applications, particularly in EV powertrains. It consists of iron alloyed with silicon to reduce energy losses, making it essential for electric motors, converters, and other electromagnetic components in EVs. The material is categorized into non-grain-oriented (NGO) and grain-oriented (GO) electrical steel, with NGO variants being predominantly used in EV motors due to their isotropic magnetic properties.

Increasing EV adoption, particularly in China, Europe, and North America, coupled with advancements in high-efficiency motor designs, is propelling demand. While the market remains concentrated among key players like Nippon Steel, ThyssenKrupp, and ArcelorMittal, emerging innovations such as thin-gauge electrical steel for lightweighting present new growth opportunities. The Asia-Pacific region, led by China and Japan, dominates both production and consumption due to robust EV manufacturing activity.

MARKET DYNAMICS

MARKET DRIVER

Rising Electric Vehicle Adoption Accelerates Electrical Steel Demand

Global push toward electrification is creating unprecedented demand for electrical steel in EV applications. With electric vehicle sales projected to reach 45 million units annually by 2030, automakers are rapidly expanding production capacities. Electrical steel forms the core component of EV motors and power electronics, with each vehicle requiring 50-100kg of specialized steel. This surge is particularly evident in China, where EV production increased by 82% year-over-year in 2023, driving electrical steel consumption to record levels.

Technological advancements in motor efficiency are further propelling market growth. New grain-oriented electrical steel grades with 20% higher permeability allow for smaller, lighter motors without sacrificing performance. These innovations enable automakers to extend vehicle range while reducing production costs – a critical factor in making EVs more affordable for mass adoption.

MARKET RESTRAINT

Supply Chain Disruptions Challenge Production Capacity

While demand for electrical steel grows exponentially, manufacturers face significant supply chain constraints. The specialized production process requires rare earth elements that are concentrated in limited geographic regions. Recent trade restrictions have caused price volatility, with neodymium prices fluctuating by 40% in 2023 alone. This volatility makes long-term planning difficult for steel producers and automakers alike.

Production bottlenecks at steel mills are creating additional challenges. The complex annealing process for grain-oriented electrical steel requires specialized equipment with lead times exceeding 18 months for new installations. Many manufacturers are struggling to expand capacity quickly enough to meet the automotive industry’s accelerating demand.

MARKET OPPORTUNITY

Next-Generation Steel Compositions Open New Applications

Emerging steel formulations present significant opportunities for market expansion. New silicon-alloyed electrical steels with 6.5% silicon content demonstrate 30% lower core losses compared to conventional grades. These advanced materials enable higher frequency operation in EV power electronics, potentially reducing system weight by 15% while improving efficiency.

The development of thin-gauge electrical steel for high-speed motors represents another promising frontier. At thicknesses below 0.2mm, these materials enable motor speeds exceeding 20,000 RPM – a critical requirement for next-generation electric aircraft and high-performance vehicles. Several manufacturers are investing heavily in this segment, with pilot production lines expected to come online by 2025.

Rising EV Adoption to Drive Electrical Steel Market Growth

Global shift towards electric vehicles is creating unprecedented demand for high-performance electrical steel, with the market projected to grow from USD 1.73 billion in 2025 to USD 3.82 billion by 2034. This growth is primarily fueled by government policies promoting clean energy transportation and automakers’ commitments to electrification. Electrical steel plays a critical role in EV components, particularly in electric motors and power converters, where its magnetic properties significantly improve energy efficiency. Recent advancements in grain-oriented steel production have enabled manufacturers to achieve higher permeability and lower core loss, directly contributing to extended EV range and battery performance.

Other Market Drivers

Technological Advancements in Steel Production

Manufacturers are investing heavily in new production techniques to meet the specific requirements of EV applications. The development of non-grain-oriented electrical steel with improved magnetic properties has become particularly important for high-speed motors used in electric vehicles. These innovations allow for thinner steel laminations (as thin as 0.1mm) that reduce eddy current losses by up to 30% compared to conventional electrical steel. The automotive industry’s transition to 800V battery systems is further accelerating demand for these advanced materials, as they can operate efficiently at higher frequencies.

Supply Chain and Regional Market Dynamics

Asia currently dominates electrical steel production, accounting for over 60% of global capacity, with China and Japan leading in both manufacturing and technological development. However, North American and European manufacturers are rapidly expanding their capabilities to reduce dependence on imports and meet local content requirements for EV incentives. The market is seeing increased vertical integration, with steel producers forming direct partnerships with automakers to develop custom solutions. This trend is particularly evident in the luxury EV segment, where performance specifications often require specialized steel grades that can withstand higher operating temperatures while maintaining magnetic properties.

Key Industry Players

Steel Giants and Emerging Players Compete for EV Market Dominance

Top 10 Companies in the Global Electrical Steel for Electric Vehicle Market (2026)

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🔟 1. ThyssenKrupp

Headquarters: Duisburg, Germany
Key Offering: Non-grain-oriented and grain-oriented electrical steel for EV motors and converters

ThyssenKrupp is a leading global steel producer with a strong foothold in the EV supply chain. Their electrical steel is used in high-efficiency motors, reducing core losses and improving vehicle range.