Replacing rare earth magnets with alternatives, such as alnico, will eliminate supply instability, increase sustainability and decrease costs of permanent magnets for applications such as traction drive motors. Lack of useful coercivity in alnico magnets limits their application for traction drive motors, despite their high temperature stability. To achieve the best second quadrant squareness and energy product, directional solidification is used to produce aligned alnico magnets. The randomly oriented, fine-grained microstructure of powder-processed, sintered alnico magnets have inferior energy products and are used for lower energy applications. This work describes powder-processed high-performance alnico magnets using epitaxially seeded solid-state grain growth driven by thermal gradient control. A modified alnico 8 composition was high-pressure gas atomized, sintered to full density, and heat treated to achieve improved magnetic properties. These alnico magnets have been thoroughly characterized using SEM, EBSD, and hysteresigraph measurements. Work funded by USDOE-EERE-VT-EDT program through Ames Lab contract no. DE-AC02-07CH11358.