--- title: SMC Has Changed the Game. Has Your Motor Design kept up? description: Discover how advances in Soft Magnetic Composites (SMC) are transforming motor design, offering new opportunities for efficiency and performance in electric machines. image: https://tkd2group.com/hubfs/download.png --- [Skip to content](https://tkd2group.com/blog/smc-has-changed-the-game.-has-your-motor-design-kept-up#main-content) [![TKD2 Group, LLC](https://tkd2group.com/hs-fs/hubfs/logowname.jpg?width=150&height=152&name=logowname.jpg)](https://tkd2group.com/) - [Home](https://tkd2group.com) - Our Company Show submenu for Our Company - [Team Spotlight](https://tkd2group.com/the-team) - [FAQ](https://tkd2group.com/faq) - [Testimonials](https://tkd2group.com/clients) - [LinkedIn](https://www.linkedin.com/company/tkd2group) - [8 Bit Sprint](https://tkd2group.com/game-code) - [2026 Calendar](https://tkd2group.com/2026-events-calendar) - Our Services Show submenu for Our Services - [Business Development](https://tkd2group.com/businessdevelopment) - [Localization Consulting](https://tkd2group.com/localization) - [Nemawashi](https://tkd2group.com/nemawashi) - Product Portfolio Show submenu for Product Portfolio - [Products](https://tkd2group.com/portfolio) - [Gallery](https://tkd2group.com/product-gallery) - Markets We Serve Show submenu for Markets We Serve - [Automotive & Transportation](https://tkd2group.com/automotive-transportation-market) - [Defense & Firearms](https://tkd2group.com/defense-firearms) - [Consumer & Industrial Goods](https://tkd2group.com/consumer-industrial-component-sourcing) - [Aerospace & Drones](https://tkd2group.com/aerospace-drone-component-sourcing) - [Medical & Contract Manufacturing](https://tkd2group.com/medical-component-sourcing-manufacturing) - [Humanoid & Industrial Robotics](https://tkd2group.com/humanoid-industrial-robotics) - [BLOG](https://tkd2group.com/blog) Open main navigation Close main navigation - [Home](https://tkd2group.com) - Our Company Show submenu for Our Company - [Team Spotlight](https://tkd2group.com/the-team) - [FAQ](https://tkd2group.com/faq) - [Testimonials](https://tkd2group.com/clients) - [LinkedIn](https://www.linkedin.com/company/tkd2group) - [8 Bit Sprint](https://tkd2group.com/game-code) - [2026 Calendar](https://tkd2group.com/2026-events-calendar) - Our Services Show submenu for Our Services - [Business Development](https://tkd2group.com/businessdevelopment) - [Localization Consulting](https://tkd2group.com/localization) - [Nemawashi](https://tkd2group.com/nemawashi) - Product Portfolio Show submenu for Product Portfolio - [Products](https://tkd2group.com/portfolio) - [Gallery](https://tkd2group.com/product-gallery) - Markets We Serve Show submenu for Markets We Serve - [Automotive & Transportation](https://tkd2group.com/automotive-transportation-market) - [Defense & Firearms](https://tkd2group.com/defense-firearms) - [Consumer & Industrial Goods](https://tkd2group.com/consumer-industrial-component-sourcing) - [Aerospace & Drones](https://tkd2group.com/aerospace-drone-component-sourcing) - [Medical & Contract Manufacturing](https://tkd2group.com/medical-component-sourcing-manufacturing) - [Humanoid & Industrial Robotics](https://tkd2group.com/humanoid-industrial-robotics) - [BLOG](https://tkd2group.com/blog) - [Contact us](https://tkd2group.com/contact-us) [Contact us](https://tkd2group.com/contact-us) [All posts](https://tkd2group.com/blog/all) October 7, 2026 # SMC Has Changed the Game. Has Your Motor Design kept up? By  [Thomas Glas](https://tkd2group.com/blog/author/thomas-glas)  ·  7 minute read  *Why advances in soft magnetic composites are changing the technical, manufacturing and commercial equation versus traditional laminated electrical steel.*    ![Soft Magnetic Composites](https://tkd2group.com/hs-fs/hubfs/download.png?width=2667&height=1500&name=download.png)  *Three forces are converging: improved SMC materials, growing demand for high-torque electric machines, and production-scale SMC manufacturing.*  SMC has crossed a threshold where material performance, manufacturing economics and U.S. supply-chain resilience are coming together at the same time. For decades, laminated electrical steel has been the default material system for electric-motor stators and rotors. Soft Magnetic Composites (SMC) have offered an intriguing alternative because their isotropic magnetic properties allow magnetic flux to travel in three dimensions, opening design possibilities that stacked two-dimensional laminations cannot reproduce. Historically, SMC came with compromises. Core losses at lower frequencies, permeability, mechanical strength and manufacturing consistency limited the number of applications in which designers could make a compelling case for moving away from laminations. That equation is changing. Recent material advances - particularly the introduction of Somaloy® 7P - combined with better electromagnetic design tools and production-scale manufacturing technology are moving SMC from a specialized design option toward a commercially viable alternative for a much broader range of electric machines. If we were designing the motor today, using today's materials and manufacturing technology, would we still choose the same architecture? ## Why have laminated steel stacks dominated electric motors? For decades, laminated electrical steel has been the default material system for electric-motor stators and rotors. For good reason: thin electrical-steel sheets provide strong magnetic performance, established manufacturing processes, mature tooling and a global supply base. A traditional stator or rotor begins with electrical-steel coil. Individual laminations are stamped or punched from the sheet, insulated from one another and assembled into a stack using interlocking, welding, bonding or other joining methods. For predominantly planar magnetic circuits, the approach works extremely well. Thin laminations restrict eddy currents, established grades provide excellent magnetic properties, and decades of development have made lamination production extremely efficient at high volumes. But the process also imposes design and manufacturing constraints. The magnetic circuit is inherently optimized around the plane of the steel sheet. Complex three-dimensional flux paths are difficult. Every stack contains many individual pieces. Stamping produces a skeleton of unused material. Handling, stacking and joining add manufacturing operations. And the economics depend heavily on tooling, production volume, geometry and material utilization. None of those issues make laminations obsolete. They simply create an opening for a different manufacturing architecture. ## What changed with modern SMC materials? Soft Magnetic Composites begin with high-purity iron particles that are individually electrically insulated. The powder is compacted into a near-net-shape component and then heat treated under carefully controlled conditions. Because each particle is insulated rather than each sheet, the finished component has magnetic properties in three dimensions. This isotropic behavior gives designers freedom to create flux paths and geometries that are difficult - or impossible - to achieve with conventional stacks. The limitation has traditionally been the material-performance tradeoff: core loss at lower frequencies, permeability, mechanical strength and manufacturing consistency restricted the number of applications in which designers could make a compelling case for moving away from laminations. Somaloy® 7P was developed specifically to push that boundary. Manufacturer data for 7P shows materially lower core losses, higher permeability and useful mechanical strength. Under published conditions, 7P data includes core loss around 29 W/kg at 1 T and 400 Hz, magnetic induction around 1.55 T at 10 kA/m, maximum relative permeability around 500, and transverse rupture strength around 60 MPa. Actual properties depend on density, geometry and processing conditions. Most importantly for motor designers, the newest 7P development work is moving SMC performance into territory that increasingly overlaps thin automotive electrical steel at relevant motor operating points. That does not mean 7P universally outperforms 0.35 mm laminations. It means the old assumption that SMC must accept a major electromagnetic penalty is becoming increasingly outdated. ## Is SMC only for axial-flux motors? No. Axial-flux machines are an obvious showcase because their three-dimensional magnetic circuits can exploit SMC particularly well. But SMC is a material and manufacturing platform, not a motor topology. The same characteristics can create value in transverse-flux machines, claw-pole motors, compact robotic actuators, drone and eVTOL propulsion, direct-drive motors, pumps, fans, industrial automation, linear electromagnetic devices and selected conventional motor architectures. The question is not simply whether a design uses axial or radial flux. The more useful questions are whether the application benefits from three-dimensional flux, higher operating frequency, shorter flux paths, integrated features, compact packaging, improved winding access, lower part count or simplified assembly. ## Material price is not material cost One of the most persistent misconceptions about SMC is that the powder costs more per pound than electrical steel and therefore the finished component must cost more. That comparison overlooks material utilization. A properly designed powder-metal component can convert more than 95% of purchased SMC powder into finished component mass. A stamped stator or rotor may use only around half of the electrical-steel sheet, depending heavily on diameter, slot geometry, nesting and whether rotor and stator blanks can be efficiently combined. Normalize the comparison around the same output: at 95% material utilization, producing 100 units of finished SMC component requires only about 105 units of raw material input. At a 50% stamping yield, producing the same 100 units of finished laminated component requires roughly 200 units of electrical-steel input. The stamping skeleton has scrap value, of course. It is recycled rather than discarded. But scrap recovery does not recover the full value embedded in producing premium electrical steel: precision rolling, annealing, coating, transportation, inventory and the processing already invested in material that never becomes part of the motor. That changes the cost comparison fundamentally. SMC can carry a higher raw-material price - and even somewhat higher conversion cost - while still competing favorably on finished-component economics because much more of the purchased material becomes useful product. The correct comparison is not powder price per pound versus steel price per pound. It is total material and processing cost per finished functional component. ![](https://tkd2group.com/hs-fs/hubfs/undefined.png?width=1774&height=887&name=undefined.png) Illustrative comparison normalized to 100 units of finished component. Actual stamping yield depends on geometry and nesting. ## The economic comparison goes beyond scrap Material utilization is only the beginning. A lamination route typically requires coil handling, stamping, scrap handling, lamination collection, stack formation and some combination of interlocking, welding, bonding or assembly. An SMC component follows a different route: high-density compaction, controlled de-lubrication and heat treatment, followed by whatever limited secondary operations the design requires. This does not mean the powder-metal route always wins. Large-scale compaction equipment, tooling and highly controlled thermal processing are sophisticated manufacturing processes. But SMC can eliminate manufacturing steps that are often ignored when comparisons focus exclusively on material price. The larger opportunity appears when the motor itself is redesigned around the material. Shorter windings, improved winding access, fewer magnetic pieces, integrated features, reduced assembly, different cooling paths, shorter axial length or increased torque density can affect the economics of the entire motor - not merely the core. **The correct commercial comparison therefore becomes finished motor system versus finished motor system.** ## What does SMC mean for U.S. supply-chain resilience? This has become an increasingly important part of the equation. U.S. imports under HTS 8503.00.65 - stators and rotors for electric motors and generators - reached approximately **$1.49 billion in 2025**, up from approximately $1.22 billion in 2024, an increase of about 22% year over year. The figures come from the U.S. International Trade Commission's [DataWeb](https://dataweb.usitc.gov/trade/), which provides official U.S. merchandise trade statistics published by the U.S. Census Bureau. This HTS category is broader than lamination stacks alone, so the import value should not be interpreted as the market size for laminated motor cores. It does, however, demonstrate the scale of U.S. reliance on imported stator and rotor assemblies. Imported stators, rotors and related steel-derived motor components can also be exposed to tariff changes, freight volatility, currency movements and geopolitical disruption. Canada and Mexico remain important North American manufacturing locations, but importing finished cores from either country is not the same as manufacturing the component in the United States. SMC does not eliminate imported content. Somaloy powder itself may be sourced internationally. But the supply-chain structure is substantially different. The imported material is a highly utilized feedstock. More than 95% can become finished magnetic-component mass, while the high-value conversion - compaction, heat treatment, process control, testing and final component production - takes place domestically. Compare that with importing a finished stator or rotor stack, or importing premium electrical steel into another country, stamping a significant portion of it into scrap, assembling the stack and then shipping the finished core into the United States. The SMC route can therefore shift much more of the manufacturing value added into the U.S. while reducing dependence on imported finished cores. That does not make the supply chain tariff-proof. It can make it shorter, more local and potentially more resilient. ## Material advancement alone is not enough A high-performance SMC powder does not automatically produce a high-performance component. The final magnetic and mechanical properties depend heavily on the manufacturing process. Compaction density matters. Lubricant removal matters. Furnace atmosphere matters. Temperature profile matters. Stress relief matters. The integrity of the insulating layer around individual particles matters. That is why industrialization capability is becoming just as important as material development. At Symmco, high-density Dorst and Osterwalder compaction technology is combined with purpose-built thermal-processing capability developed with Abbott Furnace Company. Controlled de-lubrication, atmosphere management and in-line processing are designed to turn the theoretical properties of the powder into repeatable production-component performance. The process is supported by magnetic testing, materials-laboratory capability, tooling expertise and U.S.-based production capacity. ## Where do laminations still make sense? SMC should not be positioned as the universal replacement for electrical steel. Traditional laminations remain extremely competitive in mature, predominantly two-dimensional magnetic circuits, particularly where production volumes are very high, existing tooling is amortized and the motor architecture is already optimized around laminated steel. SMC becomes most interesting when the design problem includes factors such as three-dimensional flux, compact packaging, high torque density, unusual geometry, higher frequency, integrated functions, reduced assembly, high material utilization or supply-chain localization. In those applications, simply asking an SMC supplier to reproduce an existing laminated stator geometry may miss most of the opportunity. The better approach is to evaluate the electromagnetic system and the manufacturing system together. ## Is SMC ready for prime time? Increasingly, yes - provided the application is selected correctly and the component is designed around what SMC can do. What could this motor become if the magnetic circuit were no longer constrained by stacked two-dimensional steel sheets? The material has improved. Electromagnetic design tools have improved. Demand for compact, high-torque electric machines is increasing across robotics, drones, advanced mobility and industrial automation. And manufacturing technology now exists to produce high-density SMC components at scale with controlled, repeatable properties. The question for motor designers is therefore changing. It is no longer simply: Can SMC match a lamination stack?Interested in evaluating an application? Symmco and TKD² can review an existing laminated design, a new motor architecture or an early-stage concept and help determine whether SMC offers a technical and commercial advantage. [Contact us to discuss your application →](https://tkd2group.com/contact-us) Somaloy® is a registered trademark of Höganäs AB. Material properties depend on grade, density, component geometry and processing conditions. Tariff treatment is subject to change and should be confirmed for the specific product and country of origin at the time of import.   ## Sources & technical references - [Höganäs - Somaloy coated powders for electromagnetic applications](https://www.hoganas.com/en/powder-technologies/soft-magnetic-composites/products/coated-powders-for-electromagnetic-applications/) - [Höganäs - Electric motors / SMC applications](https://www.hoganas.com/en/Industries/automotive-transportation/electric-motors/) - [Höganäs - Somaloy products and SMC benefits](https://www.hoganas.com/en/powder-technologies/soft-magnetic-composites/products) - [USITC DataWeb - official U.S. merchandise trade statistics; Imports for Consumption, Customs Value, HTS 8503.00.65, All Countries, 2024-2025](https://dataweb.usitc.gov/trade/) - [White House - Section 232 steel-derivative framework](https://www.whitehouse.gov/presidential-actions/2026/04/strengthening-actions-taken-to-adjust-imports-of-aluminum-steel-and-copper-into-the-united-states/)   Disclaimer: Images, excerpts, links, trademarks, and referenced materials included in this post are used for commentary, education, news reporting, and informational purposes under the fair use doctrine. All rights remain with their respective owners. If you believe any material has been used improperly, please contact us and we will review it promptly. 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