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A grain boundary diffusion method for a rare-earth (RE) magnet is provided. The method includes coating particles of the RE magnet with a coating material. Each RE magnet particle includes a plurality of grains. The coated particles are then simultaneously heat treated and compacted. The heat treated, compacted, and coated particles are then formed into a rare earth magnet. In a form of the method, the heat treated, compacted, and coated particles are hot deformed prior to being formed into a rare earth magnet. Another form of the method achieves the grain boundary diffusion without first sintering the rare earth magnet.