Effects of hot band annealing on the final microstructure and magnetic properties of cold rolled and annealed non-oriented grain Si-Al electrical steel strips are investigated. Microstructures are characterized using optical and scanning electron microscopy and magnetic properties are determined using a vibrating sample magnetometer. It is shown that annealing of hot rolled bands at temperatures between 800 and 850 °C causes rapid decarburization and development of a microstructure consisting of large columnar ferrite grains free of secondary particles. This microstructure leads, after cold rolling and a fast annealing treatment, to large grain microstructures similar to those observed in production scale, fully processed strips. It is observed that the final grain size increases with the final annealing temperature, leading to a significant improvement of the magnetic properties. Therefore, hot band annealing technology can be an attractive alternative processing route for the manufacture of non-oriented grain low carbon Si-Al processed electrical steel strips.