Optimizing the interface between a magnetic powder matrix and an oxide-insulating layer is an effective method to improve the permeability and lower eddy current loss of iron-based soft magnetic composites. In this study, in order to improve the bonding strength of the substrate and insulation layer, soft magnetic composites were prepared by pressing and heat treating with reduced iron powder as a magnetic matrix, high-temperature MgO nanoparticles as insulating coating, and phenolic resin as an adhesive. The effects of MgO content on the microstructure and magnetic properties of the composites were investigated. The results of a scanning electron microscopy and an energy-dispersive spectrometer analysis corroborate that the results obtained regarding the frequency characteristics and the resistivity of the iron powder agree with the scanning electron microscope (SEM) and energy dispersive spectrometer (EDS) analysis and confirm their improvement by the presence of an insulating layer of MgO. The resistivity of the sample coated with 4 wt.% MgO is nearly 45 times higher than that of the uncoated sample under the same conditions. The MgO-insulating film formed on the surface of iron powder makes the coated sample have low effective grain size, high resistivity, and low magnetic loss at a high frequency. At 1 kHz, the magnetic loss of the 4 wt.% MgO-coated sample is reduced by 77.3%, and the magnetic loss is only 5.8% compared with the uncoated sample at 50 kHz. This magnetic loss separation study shows that the addition of MgO insulation material can effectively reduce the eddy current loss of the magnetic powder core. The 4 wt.% MgO-coated sample has the lowest hysteresis loss factor and relatively low eddy current loss factor, so it can be determined that the addition of 4 wt.% MgO is the optimum content to attain a low magnetic loss.
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