A system and method to reduce core loss in the stator of an electric motor by first preparing laminations of the stator and/or rotor in a water jetting operation, punching or stamping operation, laser cutting operation, or similar manufacturing operation, and then subjecting the laminations to a temperature treatment in a manner such that, upon assembly into a stator and/or rotor of an electric motor and operated within expected parameters, core loss is reduced. The system and method subjects the laminations to a cold bath preferably consisting of liquid nitrogen, after stamping but preferably prior to assembly, and then stacking the laminations together for assembly as a stator and/or rotor of an electric motor.