Surface coating of electrical steel sheets is very important due to minimizing eddy current losses in electrical machines. The quality of coating can differ according to the composition. The coating layer has limited heat stability and after crossing of the guaranteed temperature it can be significantly degraded and its insulation properties may change importantly. The aim of this study is to describe changes in parameters of magnetic behavior of the non-oriented Si electrical steel sheet due to degradation of the coating by annealing in air. The parameters were acquired from the measuring of magnetic hysteresis loops on two types of samples with different excitation. The basic information on structure was obtained by optical microscopy. Acquired data are compared between samples with the damaged coating layer by annealing and the original coating layer. The results are discussed from the point of view of the possibility of using sheets with damaged insulation in electrical machines.Keywords: surface coating, magnetic properties, annealing, degradation
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