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Powder metallurgy materials, also termed soft magnetic composites (SMC), present features which are of great importance for the power production capabilities of the transverse flux permanent magnet machine (TFPM). The common characteristic of TFPMs is the 3D flux path through a magnetic circuit made up of a high number of laminated U- or C-shaped cores in the stator, while permanent magnets are mounted in the rotor, generally in a flux concentration arrangement. The 3D flux could not be achieved using lamination without considerable flux distortion yielding high iron losses. The substitution of the laminated U- or C-shaped cores used in earlier TFPM concepts by SMC-made cylindrical toothed sets is being deeply investigated. The paper develops this idea.