Cold-Rolled Crisis: How the EV Boom Is Driving Up Motor Costs — And What Manufacturers Can Do About It

Cold-Rolled Crisis: How the EV Boom Is Driving Up Motor Costs — And What Manufacturers Can Do About It

As electric vehicles (EVs) reshape global demand for materials, the industrial motor sector is facing a new challenge: a dramatic surge in the cost and scarcity of cold-rolled electrical steel. This essential material, long used in motor manufacturing, is now caught in the middle of an unprecedented supply squeeze. Below, we break down the issue — and explore how manufacturers can respond proactively.

1. What Is Electrical Steel — And Why It Matters

Electrical steel is a specialized iron alloy with enhanced magnetic properties.

It plays a vital role in electric motors, forming the laminated cores of stators, rotors, and transformers.

Typically manufactured as cold-rolled strips, this material ensures energy efficiency and performance stability in motors.

2. The Production Bottleneck

Although crucial, cold-rolled electrical steel makes up a small share of total steel production.

Its manufacturing process is highly capital-intensive and difficult to scale quickly.

This limits the industry’s ability to ramp up output during sudden demand surges.

3. EV Boom Drives Demand — and Prices

EVs are now major consumers of electrical steel, competing with industrial motor manufacturers for supply.

According to the Federal Reserve Bank, global prices for cold-rolled steel have increased by over 400% since January 2016.

The parallel rise in demand for lithium-ion batteries further confirms the connection between EV growth and raw material scarcity.

4. Real-World Impact on Manufacturers

Electric motor prices have risen by 35–40% since January 2020.

Lead times for new motors have increased, delaying production and raising costs.

Industrial players, once dominant in sourcing cold-rolled steel, now face reduced bargaining power.

5. Proactive Maintenance Is Key

To counter delays and rising costs, manufacturers must extend the lifespan of existing motors. Here's how:

Prevent Bearing Failures

Bearings cause two-thirds of all motor failures.

Use vibration analysis and thermal scanning to detect wear early.

Monitor for signs of imbalance, misalignment, or looseness.

Control Overheating

Mitigate causes like poor ventilation, high ambient temperatures, power supply issues, or overload.

Regular cleaning and inspection of enclosures and fans is essential.

Stabilize Voltage Supply

Keep operating voltage within ±5% of the motor’s nameplate value, as advised by the U.S. Department of Energy.

Right-size motors for specific applications to reduce stress and boost efficiency.

6. Explore Alternative Procurement Options

Consider purchasing reconditioned or obsolete motors when lead times for new units are unfeasible.

Only source from reliable suppliers that offer certified, tested components to avoid compromising quality.

Strategy Over Panic

The EV revolution is putting intense pressure on the supply and cost of cold-rolled electrical steel, but panic is not the answer. With smart maintenance strategies, diagnostic tools, and trusted suppliers, manufacturers can preserve their existing assets — and navigate today’s volatility with confidence.

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