System and method for protecting magnetic elements from demagnetization

In accordance with one embodiment, the present technique provides a magnetic assembly for an electrical machine having a rotor core. The magnetic assembly includes a magnetic element having a top surface, a bottom surface and at least one side surface located between the top and bottom surfaces, wherein the bottom surface of the magnetic element is couplable to a peripheral surface of the rotor core. The magnetic assembly also includes a ferromagnetic layer disposed on the top surface of the magnetic element. The magnetic assembly further includes an electrically conductive element that circumscribes the magnetic element.