A rotating shaft in a magnetic field can indeed generate current flow, but it does not need to be made of magnetic material; any conductive material suffices. The shape of the shaft affects current distribution, with long, thin cylindrical shapes producing minimal circulating currents. The discussion highlights that using iron, a magnetic material, versus stainless steel, a non-magnetic material, primarily impacts mechanical properties rather than electrical ones. Leakage currents can occur in both types of materials, but the differences in their electrical behavior are not significant. The conversation also touches on the possibility of using non-magnetic materials like brass or fiberglass for shafts.
