Teddy, GREAT QUESTION, I knew it to be true but its been toooooooooooo longggggggggggg for me to explain (I graduated EE wayyyyyyy back in 69) so heres a copy n paste off Google which tells it much better then I could...
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Because iron is a relatively good conductor, it cannot be used in bulk form with a rapidly changing field, such as in a transformer, as intense eddy currents would appear due to the magnetic field, resulting in huge losses (this is used in induction heating).
Two techniques are commonly used together to increase the resistivity of iron: lamination and alloying of the iron with silicon.
Lamination
Typical EI Lamination. Laminated magnetic cores are made of thin, insulated iron sheets, lying, as much as possible, parallel with the lines of flux. Using this technique, the magnetic core is equivalent to many individual magnetic circuits, each one receiving only a small fraction of the magnetic flux (because their section is a fraction of the whole core section). Because eddy currents flow around lines of flux, the laminations prevent most of the eddy currents from flowing at all, restricting any flow to much smaller, thinner and thus higher resistance regions. From this, it can be seen that the thinner the laminations, the lower the eddy currents. """"""
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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