The recycling of NdFeB magnets is necessary to ensure a reliable and ethical supply of rare earth elements as critical raw materials. This has been recognized internationally, prompting the implementation of large-scale legislative measured aimed at its resolution; for example, an ambitious recycling quote has been established in the Critical Raw Materials Act Successful recycling in sufficient quantities is challenged by product designs that do not allow the extraction and recycling of these high-performance permanent magnets without excessive effort and cost. This is particularly true for smaller motors using NdFeB magnets. Therefore, methods of recycling such arrangements with little or no dismantling are being researched. They are tested for the hydrogen-processing of magnetic scrap (HPMS) method, a short-loop mechanical recycling process. As contamination of the recycled material with residues of anti-corrosion coatings, adhesives, etc., may lead to downcycling, the separability of such residues from bulk magnets and magnet powder is explored. It is found that the hydrogen permeability, expansion volume, and the chosen coating affect the viable preparation and separation methods as recyclability-relevant design features.