A process is provided for the production of rare earth magnets comprising the steps of exposing a rare earth alloy to hydrogen gas at an elevated temperature so as to effect hydrogenation and disproportionation of the alloy, mechanically processing the disproportionated alloy, and degassing the processed alloy so as to effect hydrogen desorption and recombination of the alloy. The process of the invention finds use in the production and shaping of rare earth magnets, and may be particularly applicable to the production of thin magnetic sheets.