An increasing amount of red mud (RM) is being generated globally due to the growth in aluminum production. To avoid RM pollution, low-cost methods for effectively recycling RM are being investigated. We propose a method for recycling RM as a construction material. Liquefied RM (LRM) was neutralized by nitric acid and added to cement paste, and the hydration heat, compressive strength, and hydration products were investigated. The cement paste with neutralized LRM had a higher compressive strength than that of plain cement paste and cement paste with LRM without neutralization at 1 day of aging; this indicates that nitric acid neutralization increases the early-age strength. Furthermore, the cement paste with 10% neutralized LRM showed 28 days-compressive strength and hydration heating curves similar to the plain mixture, indicating the positive impact of LRM neutralization on the strength. It was noted that a greater quantity of portlandite was produced earlier in cement paste with neutralized LRM than in that without. Therefore, the proposed method of using RM as a concrete additive has the potential to reduce the cost and environmental impact of both construction materials and RM waste management.