The Game Changer: Zhongpu's $13 Billion Bet to Reshape the Electrical Steel Market​

As a significant move in the transformation of the steel industry, the first phase of the new energy-oriented electrical steel project by Zhongpu (Handan) Electromagnetic Materials Technology Co., Ltd. officially commenced production in April 2025. By the end of August, the project had already achieved a cumulative output of 110,000 tons of non-oriented electrical steel.

This landmark project utilizes a nationally pioneering combined production technology of "cover-type furnace + continuous furnace". The products are characterized by their ​low iron loss, high magnetic induction, and high strength, making them core materials for key sectors such as ​new energy vehicles, high-end home appliances, wind power, and photovoltaics. Xie Da, Head of the Technology Section at the company, highlighted the significant technical challenges overcome, particularly the demanding requirements for extreme purity in the steel, which is crucial for applications like new energy vehicle motors, air conditioner compressors, and drones.

The shift from traditional steel products to high-grade electrical steel has markedly improved the company's product value. While traditional steel sold for around 4,000 RMB per ton, the new electrical steel commands a price of approximately 10,000 RMB per ton and is in high demand, reflecting strong market recognition.

The successful and rapid ramp-up of production capacity has been strongly supported by the Handan Economic and Technological Development Zone. Government departments have provided comprehensive services, including regular follow-up visits, to facilitate a smooth operational launch. The full operation of the first phase is expected to achieve an annual production capacity of 500,000 tons of various electrical steel products.

According to Zhang Zhiguo, Deputy Director of the Economic Development and Investment Promotion Bureau of the Development Zone, the project is poised to drive the output value of upstream and downstream enterprises to exceed 10 billion RMB, injecting robust momentum into the development of the city's new materials industry and powerfully promoting the transformation and upgrading of the steel sector.

The Zhongpu electromagnetic materials new energy-oriented electrical steel project represents a total investment of 13 billion RMB and covers a total area of 1,200 acres. The project is being constructed in three phases. The first-phase investment is 3.2 billion RMB, occupying 280 acres. Upon completion, it is expected to generate an annual sales revenue of 5 billion RMB and create over 400 new jobs. When the entire project is fully operational, it will have an annual production capacity of 1.2 million tons of new material products, including 1.04 million tons of high-grade non-oriented silicon steel and 160,000 tons of high magnetic induction oriented silicon steel (HIB). The projected annual sales revenue is 16 billion RMB, with 1,100 new jobs created.

For detailed information and procurement of the latest products in the electrical steel sector, please feel free to contact Baohui Steel. As a seasoned agent with over twenty years of partnership with Baosteel, we are positioned to match you with the highest quality products and the most competitive prices. Comprehensive market information for both grain-oriented and non-grain-oriented electrical steel is available.

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