The Fe6.5Si soft magnetic alloy exhibits promising magnetic properties for energy applications, including near-zero magnetostriction, low magnetocrystalline anisotropy, and higher electrical resistivity than conventional electrical steels. However, its brittleness impedes industrial use. Recent advances in powder-based additive manufacturing show potential for processing high‑silicon electrical steels. This study focuses on the production cycle and properties of feedstock powder, which are crucial for such applications. Fe6.5Si alloy powders were produced via closed-coupled gas atomization. Comprehensive analysis covered mass balance, particle size distribution, powder flow, morphology, density, rheological properties, and thermal and magnetic behavior. Results suggest the feasibility of producing suitable Fe6.5Si alloy powder via gas atomization, enabling additive manufacturing of the next generation of medium/high-frequency electrical motors. The powder exhibited desirable characteristics within the size ranges applicable to laser powder bed fusion (20–75 μm) and direct energy deposition (75–106 μm), showing excellent flow behavior and morphological suitability for additive manufacturing.