A new finite element methodology is presented for fast and robust numerical simulation of three-dimensional electromagnetic wave phenomena. The new methodology combines nested multigrid techniques with the ungauged vector and scalar potential formulation of the finite element method. The finite element modeling is performed on nested meshes over the computational domain of interest. The iterative solution of the finite element matrix on the finest mesh is performed using the conjugate gradient method, while the nested multigrid vector and scalar potential algorithm acts as the preconditioner for the iterative solver. Numerical experiments from the application of the new methodology to three-dimensional electromagnetic scattering are used to demonstrate its superior numerical convergence and efficient memory usage.