In this study, cost reduction of manufacturing R (Nd, Pr, and Dy) -T (Fe, Co)-B permanent magnets was investigated. An efficient direct melting recycle of R-T-B magnet scraps and multiple methods for saving Dy were focused. In the former, Decarburization and deoxidation of R-T-B magnet scraps were developed as a pre-treatment technique for conventional induction melting. The decarburized scraps 0.001mass% carbon or less was subsequently deoxidized by calciothermic reduction. The recycled scraps can be used as low cost alloying elements by remelting. In the latter, the casting conditions for R-T-B alloy with small admixture of Ga and the improved pulverization process of R-T-B magnet alloy were developed. Microstructure of R-T-B magnet alloy with small admixture Ga was optimized by controlling cooling rate during solidification, and its average crystalline size was to be 5 m. In order to obtain finer R-T-B magnet alloy powder preferable to the coercive force, conditions of hydrogen decrepitation (HD) prior to pulverization were optimized. Specific surface area of the HD magnet alloy was increased with decreasing temperature and hydrogen pressure, and its grindability was verified by Jet milling.