The physical and magnetic properties of Mn-Al-C, Fe-Cr-Co, and RE-TM (rare earth-transition metal intermetallics) in polymer and soft metal bonded or sintered form are considered for ac circuit machine usage. The manufacturing processes for the magnetic materials are reviewed, and the mechanical and electrical properties of the magnetic materials are compared, with consideration given to the reference Alnico magnet. The Mn-Al-C magnets have the same magnetic properties and costs as Alnico units, operate well at low temperatures, but have poor high temperature performance. Fe-Cr-Co magnets also have comparable cost to Alnico magnets, and operate at high or low temperature, but are brittle, expensive, and contain Co. RE-Co magnets possess a high energy density, operate well in a wide temperature range, and are expensive. Recommendation for exploring the rare-earth alternatives are offered.