Abstract: A D.C. reactor has a core structure having two opposed cores separated by a magnetic gap, to form a closed magnetic circuit. A coil is wound on one or both of the cores. A pair of permanent magnets for biasing are disposed on the core structure. The bias flux generated by the permanent magnets and the flux generated by the coil to flow in opposite directions. Bypass means for causing the bias flux generated by the permanent magnets to bypass the magnetic gap are provided. In an embodiment the core structure comprises an E-shape core and an I-shaped core, the magnetic gap is defined between a center leg of the E-shaped core and the I-shaped core, the coil is wound on the center leg of the E-shaped core, and each permanent magnet is shaped as a rectangle and disposed on both side surfaces of the center leg of the E-shaped core.