The rapid growth of the hybrid and electric vehicle segment could potentially cause demand for electrical steel to outpace supply from 2025, according to a new report by a team of analysts from the Automotive Supply Chain and Technology team at IHS Markit. This potential shortage could severely affect OEMs’ electrification plans if not addressed by adding more capacity and investment in new capacity, the IHS Markit team said. Increasing additional production capacity is the only measure to address the structural imbalance between capacity and the major demand ramp-up for electrical steel. Electrical steels ( earlier post ) are special steels optimized for specific magnetic properties, including a small hysteresis area for low power loss per cycle, low core loss and high permeability. Electrical steels are found throughout a modern vehicle—from the small motors which drive mirrors and seats to the larger machines that are used in the propulsion […]