A sustainable separation concept for large-scale recycling of NdFeB magnets under atmospheric pressure was developed by utilizing a combination of two separation concepts known from the literature: (I) selective pre-separation by in situ chlorination and evaporation of ground oxidized NdFeB material and (II) subsequent distillation for high-purity recovery of all recyclable chlorinated material components, especially its Rare Earth Elements (REEs). Theoretically, simplified estimations of the time conversion curves at 1173 K, 1273 K, and 2000 K of a single particle resulted in the idea of realizing chlorination in some kind of combustion chamber, fluidized bed, or continuous combustion chamber. After chlorination, all non-volatile components, such as REE chlorides, are condensed out of the vapor phase in a single-stage phase separator. For subsequent fine separation by distillation (1292–1982 K for Rare Earth Chlorides and 418–867 K at 2500 kPa for boron and zirconium chloride recovery), simplified simulations were performed in a total-reflux column under ideal phase equilibrium conditions to show the estimated minimum separation effort. Using two composition examples from the literature, high-purity separation of the major Rare Earth Chlorides within a twelve-stage distillation column as a residual heavy boiling product has been demonstrated to be potentially technically feasible.