The electrochemical behavior of Nd(III) and its coreduction with Mg(II) were investigated on a molybdenum electrode at 1023 K in eutectic NaCl−KCl melts. The results indicate that the reduction of NdCl 3 in NaCl−KCl melts is a onestep process with three electrons exchanged, and the reaction is an irreversible diffusion-controlled process at low scan rate with the calculated diffusion coefficient of about 6.8 × 10 −5 cm 2 s −1 . After MgCl 2 is introduced to the melts, the reduction of Nd(III) takes place at a more positive potential value due to the formation of Mg−Nd intermetallic compounds through electrochemical co-deposition and chemical reduction of Nd(III) ions by preferentially deposited Mg. The solid intermetallic compounds of Mg 3 Nd, Mg 2 Nd, and MgNd observed in open circuit chronopotentiometry curves are transformed to thermodynamically more stable Mg-rich phases of Mg 12 Nd and Mg 41 Nd 5 when potentiostatic electrolysis at −2.10 V. It has been confirmed by X-ray diffraction and SEM-EDS microscopy that the cathodic deposits are composed of Mg, Mg 12 Nd, Mg 41 Nd 5 , and Nd. The present results confirm that it is an effective method for recycling of neodymium from waste NdFeB magnets by means of electrochemical formation of Mg−Nd alloys from NaCl−KCl−MgCl 2 −NdCl 3 melts.