Ferrites have long been in usage but with the advent of rare earth magnets some of the applications that use ferrite were converted to Neo magnets. Neo magnets gives the same performance to ferrite but with a weight reduction of 90+ percent. The recent desire to lessen the dependence on China, which control the raw materials for rare earth magnets alternate approaches are being taken. Unlike rare earth magnets, ferrite magnets coercivity increases with increase in temperature, hence can be used in motor applications that operate at 150°C. Neo magnets depend on expensive dysprosium to operate at 150°C. Maximum induction of Ferrites that was limited to 4 kiloGauss has been improved to 4.6 kiloGauss. Energy product of 5.5 MGOe is achieved in improved ferrite magnets. With the advent of hybrid and electric vehicles permanent magnet traction motors are getting lot of attention. According to some researchers NdFeB magnets costs about $2.78/kW compared to Ferrite, which costs $1.93/kW for the same peak 80 kW power output. DOE researchers find that Neomagnets are a big cost component in all electric vehicles, and difficult to meet the target specific cost by 2020. Hence, there is a growing need to find alternates to expensive Neo magnets. This presentation details the development of higher energy ferrites, reviews the current state of rare earth magnets and offers a solution to the rare earth crisis.