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The recent progress of electronic control systems in vehicles is remarkable as evidenced by the development of electronic fuel injection systems,(EFI), automatic transmission control systems, and anti-lock brake systems,(ABS). The number of actuators for the systems has been increasing. Consequently, a need has been identified for a reduction in volume and number of the system actuators for control purposes. A composite magnetic material has been developed with the aim of miniaturizing magnetic solenoid valves for actuator applications. A composite magnetic material is such that both ferromagnetic and paramagnetic sections coexist within a single material, and can contribute to optimization of the magnetic circuit of a solenoid valve. This paper describes the development of a composite magnetic material, and its resultant characteristics.