Abstract: A method of producing a magnetic material having a high magnetic anisotropy constant. A vapor phase of the components of the material is established and the vaporized components are passed into contact with a substrate maintained at a temperature such that the material will solidify and deposit thereon in the form of crystals with basal planes parallel to the plane of the substrate. The vapor deposited material is separated from the substrate and subjected to a magnetic field thereby to orient the crystals whereby a permanent magnet material is produced. Apparatus for producing the material includes means for vaporizing the components of the material. A substrate in the form of an endless belt is positioned relative to the vaporizing means so as to be exposed to the vapors and moves around rollers. Means are provided for controlling the temperature of the substrate within a preselected temperature range in a first zone so that the material solidifies as a deposit on the substrate.