The laser material purification (LMP) technology for rare metals in vapor phase was investigated. The selective photoexcitation and the photoionization of neodymium by laser were studied to develop a highly efficient and selective ionization process. Neodymium atom is effectively ionized throgh the new 3-steps ionization scheme by a single color laser beam of 577.612 nm in this process. Metallic neodymium was refined with this process and the concentration of praseodymium, which was a main impurity decreased by an order of magnitude. The LMP is to be an in-situ refining technology in a thin film fabrication process.