This article describes the development of a magnetically deformable mirror composed of a reflective monolayer of silver nanoparticles deposited at the surface of a ferrofluid. In order to be commercially competitive, this mirror must surpass existing technologies with respect to optical performance. Several important characteristics of the mirror, including reflectivity, deformability and long term stability, are determined in large part by the constituent chemical components. This article describes recent progress in the optimisation of these components. As outlined below, several important objectives have been met and the mirror has clearly passed the proof-of-concept stage. Challenges, however, remain, particularly with respect to the stability of the surface layer of silver nanoparticles that imparts reflectivity to the mirror. This interdisciplinary project underscores the role that fundamental colloid and surface chemistry can play in the development of a unique optical element.