The alloy known as **permalloy** is composed primarily of **iron** and **nickel**. Permalloy is a well-known magnetic alloy that typically consists of about **80% nickel and 20% iron**. It is renowned for having high magnetic permeability, meaning it can become magnetized easily, which makes it extremely useful in a variety of electrical and magnetic applications, such as transformers, memory storage, and magnetic shielding. The nickel in permalloy enhances the magnetic properties of the iron, giving the alloy its unique characteristics.