In this study, a novel approach to fabricate bulk magnets based on the Sm₂Co₁₇-phase by high pressure torsion (HPT) and subsequent annealing treatments is presented. The processing of magnetic materials by HPT offers several advantages. Besides strong grain refinement down to the nanometer range and the combination of powder compaction and subsequent deformation in a single processing step, the free selection of starting materials – either bulk samples or powders – as well as the formation of anisotropic magnetic properties and strain induced phase transformations make HPT a powerful tool. After HPT-deformation, a subsequent vacuum annealing at 750 °C for different annealing times (10 min – 10 h) is conducted. To monitor the microstructural evolution after HPT-deformation and subsequent annealing treatments, scanning electron microscopy is used. Transmission electron microscopy is conducted on selected specimens to get an in-depth view of the evolving microstructures. Magnetic properties are determined by scanning quantum interference device magnetometry. To monitor strain induced phase transformations during HPT-deformation and phase evolution during subsequent annealing, synchrotron high energy X-ray scattering measurements are conducted. The microstructural stability and the magnetic properties under elevated temperatures are studied by long time vacuum annealing treatments at 300 °C.