One of the unique advantages of the kinetic spray process is its ability to mix constituents that would normally react with each other to form coatings. We have used this attribute to produce composite coatings with different rare earth iron alloys (REFe2) and several ductile matrices. Composite coatings of Terfenol-D ((Tb0.3Dy0.7)Fe1.9) and SmFe2 were combined with ductile matrices of aluminum, copper, iron, molybdenum, tantalum, and nickel. Evidence of an induced magnetic coercivity was measured for the REFe2- Mo and Fe composite coatings. Coatings were produced on flat substrates and shafts. Coating morphology as well as the physical, magnetostrictive and magnetic properties of these coatings will be discussed.