NdFeB magnets based on rare earth metals (RE) are used as integral functional components for electrical energy conversion in the fields of electromobility and renewable energy as well as digitalization. They are of great importance for Germany as a business location. Although their alloying constituents have been classified as critical raw materials for years, there is no efficient recycling management for NdFeB materials. Based on the forecast that the demand for RE magnets will double in the next 10 years, this situation will become even more acute. The use of RE as a secondary resource must be improved through appropriate innovations, which will offer Germany and Europe the opportunity to turn the current locational disadvantage into an advantage in the medium term. In order to recycle used magnets, they must be firstly extracted efficiently from the magnet-containing devices. Here, the HPMS (Hydrogen Processing of Magnet Scrap) process seems to be very promising. Secondly, powder metallurgical methods allow direct reprocessing of rare earth permanent magnets which have served their time. Powder metallurgical reprocessing into recycling magnets is significantly more efficient and sustainable than elaborated and polluting chemical pulping into pure rare earth elements. To obtain good functionality of the recycling magnets, their microstructure and magnetic properties have to be tailored from the starting composition and the parameters of the powder metallurgical recycling process. Both together shall enable a much shortened and more environmentally friendly process chain with 25% higher yield at up to 90% energy savings and 98% less human toxicity compared to new magnet production.