Oxidative roasting of Nd-Fe-B permanent magnets prior to leaching improves the selectivity in the recovery of rare-earth elements over iron. However, the dissolution rate of oxidatively roasted Nd-Fe-B permanent magnets in acidic solutions is very slow, often longer than 24 h. Upon roasting in air at temperatures above 500 °C, the neodymium metal is not converted to Nd 2 O 3 , but rather to the ternary NdFeO 3 phase. NdFeO 3 is much more difficult to dissolve than Nd 2 O 3. In this work, the formation of NdFeO 3 was avoided by roasting Nd-Fe-B permanent magnet production scrap in argon atmosphere, having an oxygen content of p O 2 ≤ 10 −20 atm, with the addition of 5 wt% of carbon as an iron reducing agent. For all the non-oxidizing iron roasting conditions investigated, the iron in the Nd-Fe-B scrap formed a cobalt-containing metallic phase, clearly distinct from the rare-earth phase at microscopic level. The thermal treatment was optimized to obtain a clear phase separation of metallic iron and rare-earth phase also at the macroscopic level, to enable easy mechanical removal of iron prior to the leaching step. The sample roasted at the optimum conditions (i.e., 5 wt% carbon, no flux, no quenching step, roasting temperature of 1400 °C and roasting time of 2 h) was leached in the water-containing ionic liquid betainium bis(trifluoromethylsulfonyl)imide, [Hbet][Tf 2 N]. A leaching time of only 20 min was sufficient to completely dissolve the rare-earth elements. The rare-earth elements/iron ratio in the leachate was about 50 times higher than the initial rare-earth elements/iron ratio in the Nd-Fe-B scrap. Therefore, roasting in argon with addition of a small amount of carbon is an efficient process step to avoid the formation of NdFeO 3 and to separate the rare-earth elements from the iron, resulting in selective leaching for the recovery of rare-earth elements from Nd-Fe-B permanent magnets.