Magnetic nanoparticles (MNP) have attracted considerable interest in many fields of research and applied science due to their impressive properties. In the past, especially biomedical problems have promoted the development of MNPs. For technical applications e.g. wastewater treatment and absorption of electromagnetic waves, the existing synthesis approaches are too expensive and/or the producible quantities are too low. In this work we present a method for simple preparation of size-controlled magnetic iron oxide nanoparticles by electroerosion dispersion (EED) of carbon steel in water. We describe the synthesis method, the laboratory installation and discuss the structural, chemical and electromagnetic properties of the synthesized EED powders as well as their applicability for microwave absorption compared to other available ferrite powders.