Extraction of rare earth elements from the Nd-Fe-B magnet scraps through the chlorination with NH4Cl was performed to study the effective process for reusing metal iron as well as rare earths. The Nd2Fe14B primary phase was selectively converted to neodymium chloride in the yield of ca. 90%, together with alpha-Fe and Fe-B residue on the basis of the higher chlorine affinity of rare earths.