Due to its hexagonal structure, the intermetallic compound SmCo5 has an extremely high crystalline anisotropy. The anisotropy field determined on a single crystal is 290 kOe. Approximately 5% of this value is obtained for the coercivity when SmCo5 powder particles are subject to grinding or milling. The saturation magnetization (4πIs) is 9800 G. From this, one obtains a theoretical limit for the energy product of nearly 24×106 G Oe. Previous efforts to realize this value for a SmCo5 fine particle magnet only resulted in a value of 8.1×106 G Oe. The main reason is the low relative density of the pressed‐powder magnet body (70%). A new method has been developed to press the powder particles together. Relative densities of 95% were obtained, resulting in a magnet body with an energy product of 18.5×106 G Oe. The corresponding values obtained for the remanence and coercive force are 4πIR=8700 G and BHC=8400 Oe.