Chinese Steel Giant Shagang Group Achieves Breakthrough in Ultra-Thin Electrical Steel Production
Jiangsu Province, China – Shagang Group, one of China’s largest private steelmakers, has announced the successful production of a 0.1mm-thick non-grain-oriented (NGO) electrical steel, a significant advancement in materials science with implications for the electric vehicle (EV) industry. The development, reported on March 19, 2026, by multiple Chinese news outlets, promises to improve the efficiency of electric motors and reduce energy loss. This achievement positions Shagang Group as a key player in the evolving landscape of high-performance materials for new energy vehicles (NEVs).
Electrical steel is a crucial component in the motors of electric vehicles, transformers, and other electrical equipment. Traditional NGO electrical steel typically ranges in thickness from 0.20 to 0.35mm. Reducing this thickness offers substantial benefits, particularly in high-speed motor operation. According to Shagang Group, the thinner 0.1mm steel can reduce iron loss – a major source of energy waste in motors – by 30 to 50%, leading to increased efficiency and reduced heat generation. This innovation is particularly important as manufacturers strive to increase motor speeds and performance in EVs, demanding materials that can withstand higher operating conditions.
The Drive for Thinner Steel and its Impact on EV Performance
The pursuit of thinner electrical steel is driven by the increasing demands of the EV market. As electric motors spin faster to deliver greater power and efficiency, iron loss becomes a more significant problem. Iron loss refers to the energy dissipated as heat within the steel core of the motor due to hysteresis and eddy currents. Reducing this loss directly translates to improved energy efficiency and extended driving range for EVs. Shagang Group claims its new 0.1mm steel is thinner than a standard sheet of A4 paper, highlighting the precision achieved in its manufacturing process.
While Shagang Group’s announcement marks a significant step, it’s not the first instance of 0.1mm NGO production in China. Reports indicate that Wuhan Iron and Steel Group (WISCO) began mass production of 0.1mm NGO electrical steel as early as May 2024. According to Cliart Korea, this demonstrates a growing trend within the Chinese steel industry towards producing advanced materials for the NEV sector. The competition between Shagang Group and WISCO is expected to further drive innovation and lower costs in this critical supply chain.
Shagang Group’s Expansion and Investment in Electrical Steel Production
Shagang Group’s commitment to electrical steel production extends beyond this recent breakthrough. The company is actively expanding its production capacity in this area. Steel Daily reports that Shagang Group has placed a second order for a cold rolling mill from French company Fives, with operations scheduled to commence in Jiangsu Province in 2026. This new mill will have an annual production capacity of 80,000 tons of NGO electrical steel, specifically targeted for high-performance EV motors. This investment underscores Shagang Group’s confidence in the growing demand for advanced electrical steel and its ambition to turn into a leading supplier in the EV supply chain.
Shagang Group is also considering expanding its hot-rolled steel (HRC) production based on electric arc furnace (EAF) technology. As reported by SteelWhere, the proposed expansion would involve a new facility with an annual capacity of 200,000 to 300,000 tons, focusing on high-value flat products for the automotive and appliance industries. This move aligns with a broader industry trend towards EAF-based steelmaking, which is considered more environmentally friendly than traditional blast furnace methods.
China’s Steel Industry and the Global EV Market
China is the world’s largest producer and consumer of steel, and its steel industry plays a pivotal role in the global supply chain for electric vehicles. The country’s dominance in the EV market – accounting for over 60% of global EV sales in 2023 – has spurred significant investment in the production of advanced materials like NGO electrical steel. The Chinese government has also implemented policies to encourage the adoption of EAF technology and reduce carbon emissions from the steel industry.
The advancements made by companies like Shagang Group and WISCO are not only benefiting the domestic EV market but also have implications for global automakers. As the demand for EVs continues to grow worldwide, the availability of high-quality, cost-effective electrical steel will be crucial. China’s ability to supply this material will likely strengthen its position as a key player in the global automotive industry.
Key Takeaways
- Shagang Group has successfully produced 0.1mm-thick NGO electrical steel, a breakthrough for EV motor efficiency.
- This thinner steel reduces iron loss by 30-50%, improving energy efficiency and reducing heat generation in EV motors.
- Shagang Group is expanding its electrical steel production capacity with a new cold rolling mill scheduled to begin operations in 2026.
- China is a leading producer of electrical steel and a dominant force in the global EV market.
- The industry is shifting towards more sustainable EAF-based steelmaking processes.
Looking ahead, the continued development of advanced materials like ultra-thin electrical steel will be essential for driving innovation in the EV industry. Shagang Group’s latest achievement demonstrates China’s commitment to leading the way in this critical area. Further updates on Shagang Group’s production capacity and technological advancements are expected throughout 2026. We encourage readers to share their thoughts and insights on this developing story in the comments below.