Onyx and Scyther, my friend. You have to trade them holding the item
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Have a Scyther or Onix hold it. Trade them, and then they'll evolve into Scizor and Steelix, respectively.
It is used to evolve Onix and Scyther. You trade them while holding the metal coat.
You don't need metal coat for Scyther. You just need to use a sun stone to get it to evolve into Scizor.
No, the Metal Coat is an evolution item that you give to Onix or Scyther before you trade one of them if you want a Steelix or Scizor. Once you traded an Onix or Scyther holding a Metal Coat, your Pokemon will evolve, but they won't be holding a Metal Coat afterwards for you to take back.
On iron island's last room before the exit way in the back. go up in the empty room and you can find metal coat in the middle. You can use it on a steelix to trade, hold it, and evolve it