To produce a sintered rare earth permanent magnet such as R-Fe-B and R-Co types having a thin wall shape or a small size shape and superior magnetic characteristics by suppressing a rare earth element-contained alloy powder from reacting with a binder, reducing the residual O and residual C in the power after sintered, and improving the fluidity and lubrication of the powder at forming to improve the dimensional accuracy and productivity of a molding.

A binder of a polymer with water or organic solvent and binder composed of at least one polymer are added to a rare earth element-contained alloy powder and stirred into a slurry, the slurry is atomized into liq. drops in a chamber of a spray drier and instantaneously dried to harden grains, thus improving the fluidity and lubrication of the powder at compression forming. Before forming, a mechanical vibration is applied to dies to form thereafter, this improving the magnetic field orientation enough to obtain a thin wall shaped or complicated shaped sintered permanent magnet superior in magnetic characteristics.