Electromagnetic devices utilize soft magnetic composites (SMCs), which are comprised of electrically insulated ferrous powders. However, at high curing temperatures, current coating materials degrade, which create metal-on-metal contact points, thus increasing losses. Oxide-coated SMCs permit 3D magnetic flux capabilities and lower losses while maintaining high magnetic permeability and allowing for higher curing temperatures. Studies of alumina- and magnetite-coated iron powders show that isolating individual particles leads to improved resistivity and magnetic properties. Fe powders are mechanically milled with alumina media or magnetite powder to produce uniformly coated particles, which are then compacted and cured. Then, magnetic testing on the micro- (VSM) and macro- (DC/AC toroid testing) scale are compared for various sized iron powders and the two different coating materials. Microstructural (SEM/EDS/EBSD) analysis is performed to determine coating thickness and composition. Lastly, results are compared to current polymer coated materials used as SMCs.