Rotor and stator assemblies that utilize magnetic bearings for supporting the rotor shaft during operation can be suitably used in corrosive environments, such as sour gas. The rotor and stator assemblies include NACE compliant magnetic bearing arrangements for sour gas applications. One embodiment includes a stator assembly that comprises a stator sleeve formed of a magnetic material, a sleeve extender coaxial to the stator sleeve formed of a non-magnetic material fixedly attached to each end of the stator sleeve, wherein a point of attachment is heat treated, and a wall formed of the non-magnetic material fixedly attached to the sleeve extender configured to hermetically house a stator and form the encapsulated stator assembly.