A method of making a permanent magnet includes a step of forming a coating on an alloy powder by physical vapor deposition. The alloy powder includes neodymium, iron, boron and other metals. The coating includes a component selected from the group consisting of dysprosium, terbium, iron, and the alloys thereof. The alloy powder is vibrated during formation of the coating. Finally, a permanent magnet is formed from the coated powder, the permanent magnet having a non-uniform distribution of dysprosium and/or terbium. A method of making a permanent magnet using a vibrating transport belt is also provided.