Nowadays, with the evolution of technology, rare earths are raw materials for a multitude of products, especially in high technological applications. A high amount of REEs is used in the production of permanent magnets, particularly NdFeB. The demand for some of the REEs, including neodymium, praseodymium, and dysprosium, is expected to increase in the coming years. REEs are defined as critical materials due to their high supply risk and economic importance. Recycling secondary raw materials for supplying REEs in the future is one promising option, and one of the best candidates is NdFeB magnets. NdFeB magnets include approximately 30% REEs and 66% of iron. For the near-zero-waste concept, the recovered iron from NdFeB must be evaluated in other applications. In this study, the near-zero-waste valorization concept for EoL-NdFeB magnets is developed, and high-purity REEs are achieved with a two-step process, including leaching and adsorption using alginate beads. Moreover, antimicrobial Fe alginate beads are produced in the leach liquor via adsorption. The antimicrobial activity of the produced Fe alginate beads is evaluated with disc diffusion and broth dilution methods against Grampositive Staphylococcus aureus and Gram-negative Escherichia coli. The most effective antibacterial Fe alginate beads are against E. coli and S. aureus with inhibitions of 87.21 and 56.25%, respectively.