A potentially environmentally-friendly and cost-effective flowsheet was developed that is adjustable to all REE magnets. Concentrated nitric acid was mixed with up to < 1000 µm magnet powder to completely form a nitrate mixture in 1 h at 25 °C. Fe-nitrate completely decomposed by calcination at 200 °C for 1 h to insoluble forms without any REE-nitrate decomposition. After leaching of the calcine at 25 °C for 1 h in water, > 95 % REE and < 1 % Fe extractions were achieved. The majority of the consumed acid can be theoretically recycled by simple condensation of the by-product gases. The goethite-hematite residue can be further decomposed to only hematite as a potentially more useful by-product.