Permanent magnets based on neodymium-iron-boron (Nd-Fe-B) alloys provide the highest performance and energy density, finding usage in many high-tech applications. Their magnetic performance relies on the intrinsic properties of the hard-magnetic Nd
2Fe
14B phase combined with control over the microstructure during production. In this study, a novel magnetic hardening mechanism is described in such materials based on a solid-state phase transformation. Using modified Nd-Fe-B alloys of the type Nd
16Fe
bal-x-y-zCo
xMo
yCu
zB
7 for the first time it is revealed how the microstructural transformation from the metastable Nd
2Fe
17B
x phase to the hard-magnetic Nd
2Fe
14B phase can be thermally controlled, leading to an astonishing increase in coercivity from ≈200 kAm
−1 to almost 700 kAm
−1. Furthermore, after thermally treating a quenched sample of Nd
16Fe
56Co
20Mo
2Cu
2B
7, the presence of Mo leads to the formation of fine FeMo
2B
2 precipitates, in the range from micrometers down to a few nanometers. These precipitates are responsible for the refinement of the Nd
2Fe
14B grains and so for the high coercivity. This mechanism can be incorporated into existing manufacturing processes and can prove to be applicable to novel fabrication routes for Nd-Fe-B magnets, such as additive manufacturing.
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