Iron-resin composites or dielectromagnetic materials are designed for AC and pulsed DC electromagnetic applications. These new materials present interesting features such as ease of shaping, high induction, low losses and isotropic electrical, thermal and magnetic properties. Compared to steel laminations, better performing and/or more compact devices may result from an optimisation of the design taking full advantage of these isotropic properties. Also, compared to soft ferrites, dielectromagnetics show higher magnetic saturation and much better machinability. In this paper, potential applications for this type of material in the automotive industry together with their specific requirements are discussed. The characteristics of a new dielectromagnetic material, ATOMET EM-1, are described. Temperature being an important issue for most applications, e.g., under-the-hood applications, the effects of temperature on mechanical and magnetic properties of this dielectromagnetic material have been evaluated. The performances of a permanent magnet motor made from both a dielectromagnetic and a laminated steel sheet are modeled and compared.