Non-oriented Silicon Steel for EV Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

Non-grain-oriented silicon steel has emerged as a cornerstone material in modern electrification efforts, particularly within the rapidly expanding electric vehicle sector. Its balanced magnetic properties, low core losses, and superior performance under high-speed, variable-load conditions make it the preferred choice for traction motors and power electronics. As governments worldwide accelerate commitments to net-zero targets, automakers and component suppliers are investing heavily in materials that optimize efficiency, reduce heat generation, and enhance overall system reliability.

This executive summary examines the key drivers reshaping the NGO silicon steel market, including technological advancements, evolving trade policies, and shifting consumer demands. By exploring recent tariff developments, granular segmentation insights, regional demand patterns, and competitive dynamics, readers will gain a holistic understanding of how non-grain-oriented silicon steel is positioned to support the next generation of electric mobility. Furthermore, actionable recommendations will guide industry leaders in aligning their strategies with emerging opportunities and navigating potential risks. The insights presented here set the stage for informed decision-making and sustained growth in a landscape defined by rapid transformation and intense competition.

The landscape for non-grain-oriented silicon steel is undergoing transformative shifts driven by breakthroughs in production methods and material science. Anti-vibration technologies and advanced coating processes are enabling manufacturers to reduce noise and iron losses, thereby elevating motor performance and passenger comfort. Concurrently, innovations in cold rolled and hot rolled production techniques are improving magnetic uniformity at thinner gauges, supporting lighter, more compact motor designs that extend driving range.

At the same time, electric vehicle OEMs are broadening their supply chains beyond traditional producers to include specialty steelmakers focusing on noise reduction and iron loss optimization. This pivot is spurring collaboration across the value chain-from rolling mills experimenting with novel alloy compositions to motor designers integrating silicon steel laminations into modular, high-speed architectures. In parallel, growing demand from home appliance manufacturers and power generation equipment producers is reinforcing the material’s versatility, prompting a surge in capacity expansions and strategic partnerships. These converging developments signal a new era for non-grain-oriented silicon steel, one in which continuous improvement and cross-industry integration are paramount.

In 2025, new U.S. tariffs on imported silicon steel have reshaped cost structures and supply strategies for global producers and end users. The cumulative impact has manifested in increased raw material costs for electric vehicle manufacturers, compelling them to seek alternative sourcing routes and to negotiate long-term contracts with domestic producers. Meanwhile, home appliance OEMs have felt the squeeze as distribution transformers and induction motor suppliers adjust their pricing models to offset higher steel expenses.

These tariff measures have also triggered regional realignments: some steelmakers are redirecting exports toward markets in Europe and Asia-Pacific where duties remain lower, while others are ramping up production of flat rolled and cold rolled varieties domestically to serve the aftermarket and OEM automotive segments. Over the short term, this realignment has introduced inventory bottlenecks and price volatility, but it has also incentivized investment in annealing and coating facilities within the United States. Ultimately, stakeholders who proactively adapt their procurement, manufacturing, and logistics frameworks will be best positioned to mitigate tariff-induced disruptions and secure stable supply.

A comprehensive segmentation analysis reveals nuanced demand patterns that can guide strategic prioritization. When examining applications, electric vehicles-both passenger and commercial-drive the most aggressive growth, yet home appliances such as air conditioners, refrigerators, and washing machines represent a stable, high-volume base that benefits from incremental efficiency gains. Motors segment demand across induction and synchronous variants, while distribution and power transformers underpin bulk consumption in utilities and heavy industry alike.

On the basis of material type, cold rolled grades continue to dominate due to their low core loss characteristics, although flat rolled and hot rolled steels maintain importance in specialty applications requiring thicker laminations. Within end users, automakers-spanning both OEMs and aftermarket channels-account for the lion’s share of consumption, followed by the energy sector where renewable installations are elevating transformer-related demand relative to traditional power generation. Thickness categories further refine opportunity zones: thin laminations (0.1–0.3 mm) are prized in high-speed motors, medium gauges (0.3–0.8 mm) serve general-purpose applications, and thick variants support heavy-duty power distribution.

Production methods such as annealing, casting, slicing, and rolling increasingly determine cost and performance trade-offs, with advanced annealing cycles offering pathways to lower iron losses. Technological subsegments focused on anti-vibration and noise reduction cater to premium automotive and appliance markets, while iron loss reduction innovations remain critical for large-scale energy infrastructure. Finally, the contrast between non-grain-oriented and grain-oriented structures underscores the material’s adaptability: the former excels in rotating field environments, reinforcing its indispensability for next-generation e-mobility.

Regional demand is evolving in distinct patterns that reflect policy, infrastructure, and end-use dynamics. In the Americas, intensified domestic production in response to 2025 tariffs is boosting investment in rolling and coating facilities, with electric vehicle hubs in the United States and Brazil spearheading local sourcing initiatives. Across Europe, Middle East & Africa, regulatory targets for vehicle emissions and renewable energy rollouts are driving a balanced uptake of silicon steel across passenger vehicles, commercial fleets, and grid modernization projects.

Meanwhile, in Asia-Pacific, China, Japan, and South Korea maintain their leadership in both production and consumption, supported by integrated supply chains that link major steelmakers to automotive and appliance conglomerates. Rapid adoption of electric buses in India and Southeast Asia is opening new pathways for non-grain-oriented variants optimized for high-speed urban transit. These regional distinctions underscore the importance of a tailored approach: manufacturers and end users alike must align product portfolios and capacity plans with the specific requirements and policy environments of each geography.

The non-grain-oriented silicon steel landscape is dominated by a cadre of established and emerging players driving both volume and innovation. Companies like AK Steel Corporation and POSCO have leveraged their expansive rolling facilities to meet surging electric vehicle motor demand, while Nippon Steel Corporation and JFE Steel Corporation focus on advanced coating technologies that reduce core losses and noise. In Europe, Thyssenkrupp Electrical Steel GmbH and Voestalpine Stahl GmbH are investing heavily in anti-vibration and high-speed motor laminations, positioning themselves as key partners for premium automotive brands.

Asian titans such as Ansteel Group Corporation Limited, Baoshan Iron & Steel Co., Ltd., and Shougang Group Co., Ltd. continue to expand their global footprints, often through joint ventures that bolster their production of cold rolled and hot rolled grades. Tata Steel Limited and WISCO have also initiated capacity upgrades targeting medium and thick gauge laminations for distribution transformers, while Aperam S.A. emphasizes sustainable, low-carbon production methods. Collectively, these industry leaders are shaping the competitive landscape through strategic capacity expansions, technology collaborations, and differentiated service propositions to meet evolving customer requirements.

To capitalize on emerging market opportunities, industry leaders should adopt a multi-pronged strategy. First, prioritize investments in advanced annealing and coating lines that deliver lower iron losses and noise reduction, thereby commanding premium pricing in EV and appliance sectors. Second, diversify regional footprints by establishing or expanding production in tariff-favored zones and high-growth markets such as India, Southeast Asia, and Eastern Europe. Third, strengthen partnerships with motor designers and OEMs through co-development projects that align material specifications with next-generation electric drive architectures.

Additionally, companies should accelerate research into ultra-thin laminations and novel alloy compositions to support higher-speed applications, while also exploring circular economy initiatives that reclaim and recycle end-of-life silicon steel. Implementing digital twin simulations and real-time process monitoring can further drive yield improvements and cost efficiencies. By integrating these recommendations into their strategic roadmaps, leaders can mitigate supply chain risks, differentiate product offerings, and secure long-term contracts with key automotive, energy, and industrial customers.

Non-grain-oriented silicon steel stands at the intersection of technological innovation, policy shifts, and rising electrification demands. Its unique blend of magnetic performance and adaptability makes it indispensable for electric vehicle traction motors, home appliances, industrial machinery, and power distribution assets. As tariffs, regional dynamics, and competitive pressures evolve, stakeholders must remain agile-leveraging segmentation insights, regional nuances, and supplier capabilities to maintain resilience and drive value.

By aligning R&D priorities with end-user requirements, optimizing production methods for quality and cost, and forging strategic alliances across the value chain, organizations can secure a sustainable competitive advantage. The strategic imperatives outlined here serve as a blueprint for navigating the complexities of the silicon steel market, ensuring that decision-makers are equipped to seize growth opportunities while effectively managing risks in an increasingly dynamic environment.

Ready to gain full access to in-depth analysis, detailed segmentation data, and strategic recommendations tailored to the non-grain-oriented silicon steel market? Contact Ketan Rohom, Associate Director, Sales & Marketing, to purchase the comprehensive market research report and unlock the insights you need to drive informed decisions and outpace the competition.