An AC electric machine that includes a dual magnetic phase material ring is disclosed. The AC electric machine includes a stator assembly and a rotor assembly positioned within the stator assembly and configured to rotate relative thereto, the rotor assembly comprising a rotor core including a stack of rotor laminations that collectively form the rotor core, the rotor core including a plurality of rotor poles separated by gaps therebetween. The AC electric machine also includes a dual magnetic phase material ring positioned about the stack of rotor laminations, the dual magnetic phase material ring comprising a first ring portion comprising a magnetic portion and a second ring portion comprising a non-magnetic portion.