Sometimes referred to as “hard ferrite” permanent ceramic magnets contain magnetite, a hard crystalline iron ferrite mineral that derives its magnetism from the effect the earth's magnetic field has on it. Ceramic permanent magnets are made from finely powdered barium ferrite or strontium ferrite formed under heat and pressure. Their magnetic strength is enhanced by aligning the powder particles with a strong magnetic field during forming. Ceramic magnets are comparable to Alnico magnets in terms of magnetic force and have the advantage of being able to be pressed into various shapes without significant machining as well as being the most economical magnetic material in terms of cost.

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