High Quality Content by WIKIPEDIA articles! Permalloy is a nickel-iron magnetic alloy, with about 20% iron and 80% nickel content. It is notable for its very high magnetic permeability, which makes it useful as a magnetic core material in electrical and electronic equipment, and also in magnetic shielding to block magnetic fields. Commercial permalloy alloys typically have relative permeability of around 100,000, compared to several thousand for ordinary steel.