A new smart release inhibitor was manufactured and assessed for protecting a coated hot dip galvanised steel substrate against cathodic disbondment. The Mg2+ ion containing inhibiting pigment showed the highest level of inhibition, with no delamination of the poly vinyl butyral (PVB) coating over the 24 h period. It was demonstrated with the use of group II cations that the hydroxide produce from the metal cation and OH− produced at the cathodic oxygen reduction site was a contributing factor in the protection against cathodic disbondment. The chromate free inhibitor system has smart release functionality and releases its inhibitor via ion exchange processes. It improves on previous work by Williams et al. by using an exchange matrix (Amberlite®) with three times the exchange capacity.