Method of making Nd—Fe—B magnetic materials with reduced heavy rare earth metals

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A method of making a magnetic material includes a step of providing a first material in the form of a core powder containing Nd, Fe and B. The first material is combined with the second material to form a powder combination. The second material includes a component selected from the group consisting of Dy, Tb, and combinations thereof. The powder combination is encapsulated to form an encapsulated powder combination. A magnetic field is applied to the powder combination during encapsulation and thereafter to align the magnetic dipoles therein. The encapsulated powder combination is isostatically pressed with heat to form the magnetic material.