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Novel methods of recovering neodymium and related rare earth elements from permanent magnets of various compositions are described. The methods employ processing steps including converting the magnet material to a higher surface area form such as a powder, treating the mixture with alkaline solutions to form product concentrated in neodymium and rare earth metals. Inexpensive materials such as ammonia, ammonium carbonate, carbon dioxide, water are recycled in a process that uses moderate temperatures, pressures and non-corrosive and environmentally-friendly chemicals.