Liquid metal extraction (LME), a pyrometallurgical recycling method, is popular owing to its negligible environmental impact. LME mainly targets rare-earth permanent magnets having several rare-earth elements. Mg is used as a solvent metal for LME because of its selective and eminent reactivity with rare-earth elements in magnets. Several studies concerning the formation of Dy-Fe intermetallic compounds and their effects on LME using Mg exist. However, methods for reducing these compounds are unavailable. Fe reacts more strongly with B than with Dy; B addition can be a reducing method for Dy-Fe intermetallic compounds owing to the formation of Fe2B, which takes Fe from Dy-Fe intermetallic compounds. The FeB alloy is an adequate additive for the decomposition of Fe2B. To accomplish the former process, Mg must convey B to a permanent magnet during the decomposition of the FeB alloy. Here, the effect of Mg on the transfer of B from FeB to permanent magnet is observed through microstructural and phase analyses. Through microstructural and phase analysis, it is confirmed that FeB is converted to Fe2B upon B transfer, owing to Mg. Finally, the transfer effect of Mg is confirmed, and the possibility of reducing Dy-Fe intermetallic compounds during LME is suggested.