Abstract: A method and apparatus for producing rare earth (RE), iron, boron type anisotropic magnetic material includes process steps of forming dense substantially magnetically isotropic coarse powder particles of melt spun alloy with a very fine grain RE.sub.2 Fe.sub.14 B phase; heating such particles (e.g. by plasma spraying) and directing them against hot working rolls at the entrance thereof; and hot deforming the particles while in a plastic state between surfaces of the hot working rolls so as to cause crystallites in the particles to be oriented along a crystallographically preferred magnetic axis. The particles are cooled and ejected from the rolls as individual anisotropic permanently magnetic flakes. Apparatus including a feed hopper with a carrier tube pressurized to direct isotropic particles to the arc of a plasma spray torch. The torch softens the particles and sprays them in a spatter pattern.