The development of better-performing electrical machines implies the improvement of soft magnetic materials with lower losses due to hysteresis and eddy currents. Electric steels (Fe-Si) have long been used as ferromagnetic material in electrical machine cores. Despite being of low cost, Fe-Si steels with Si content up to 3.2 % in weight have low electrical resistivity, which generates large losses due to eddy currents. With an increase in the Si content, the electrical resistivity and magnetic properties are improved, but on the other hand, the material becomes brittle, which in turn, makes the manufacturing process more complex. To increase resistance to eddy currents, the core is formed by thin sheets of Fe-Si steel and with an insulating layer between successive laminations. This geometric configuration is reproducible by additive manufacturing, which creates almost totally dense metallic components, layer by layer, directly from computer-aided design data. In this work, a critical review will be presented on the development of layered Fe-Si composites by additive manufacture for soft magnetic applications. Some key topics requiring attention for further development will be highlighted and discussed.