Nd-Fe-B powder produced by conventional methods is pyrophoric, and exhibits poor corrosion resistance. Magnets made from powder are also susceptible to corrosion. Conventional methods of production are complicated, potentially hazardous, and relatively expensive. A novel, low cost, less hazardous method of producing powder and magnets with high corrosion resistance and Curie point is discussed. Nd-Fe-B alloys are milled in water, vacuum dried, and passivated at a suitable temperature in a nitrogen or carbon dioxide medium. During passivation, a protective layer, comprised of nitride and/or carbide phases, is formed in the surface region of the powder particles. This powder is not pyrophoric, and may be stored in a laboratory air environment for an extended period of time with no loss in magnetic properties. Compacted and sintered magnets produced from this powder are also highly corrosion resistant, and exhibit a higher Curie point compared to conventionally produced magnets. A description of the novel technology, and a discussion of the properties of Nd-Fe-B-C/N powder and magnets is given.