The efficiency of material removal by electrochemical machining (ECM) and rim zone modifications is highly dependent on material composition, the chemical surface condition at the break through potential, the electrolyte, the machining parameters and the resulting current densities and local current density distribution at the surfaces. The ECM process is mechanistically determined by transpassive anodic metal dissolution and layer formation at high voltages and specific electrolytic compositions. The mechanisms of transpassive anodic metal dissolution and oxide formation are not fully understood yet for steels such as 42CrMo4. Therefore, martensitic 42CrMo4 was subjected to ECM in sodium nitrate solution with two different current densities and compared to the native oxide of ground 42CrMo4. The material removal rate as well as anodic dissolution and transpassive oxide formation were investigated by mass spectroscopic analysis (ICP-MS) and (angle-resolved) X-ray photoelectron spectroscopy ((AR)XPS) after ECM. The results revealed the formation of a Fe_3−xO₄ mixed oxide and a change of the oxidation state for iron, chromium and molybdenum, e.g., 25% Fe (II) was present in the oxide at 20.6 A/cm² and was substituted by Fe (III) at 34.0 A/cm² to an amount of 10% Fe (II). Furthermore, ECM processing of 42CrMo4 in sodium nitrate solution was strongly determined by a stationary process with two parallel running steps: 1. Transpassive Fe_3−xO₄ mixed oxide formation/repassivation; as well as 2. dissolution of the transpassive oxide at the metal surface.