Some electric motors rely upon a combination of an electromagnet and a permanent magnet, and, much like loudspeakers, they convert electric energy into mechanical energy. A generator is the reverse: it converts mechanical energy into electric energy by moving a conductor through a magnetic field.

The rotor can fit inside the stator magnets; a magnetically soft stationary cylinder inside the rotor provides a return path for the stator magnetic flux. Because the rotor is much lighter in weight (mass) than a conventional rotor formed from copper windings on steel laminations, the rotor can accelerate much more rapidly, often achieving a mechanical time constant under one ms. This is especially true if the windings use aluminum rather than the heavier copper. But because there is no metal mass in the rotor to act as a heat sink, even small coreless motors must often be cooled by forced air. Overheating might be an issue for coreless DC motor designs.

Most speakers employ a permanent magnet and a current-carrying coil to convert electric energy (the signal) into mechanical energy (movement that creates the sound). The coil is wrapped around a bobbin attached to the speaker cone and carries the signal as changing current that interacts with the field of the permanent magnet. The voice coil feels a magnetic force and in response, moves the cone and pressurizes the neighboring air, thus generating sound. Dynamic microphones employ the same concept, but in reverse. A microphone has a diaphragm or membrane attached to a coil of wire. The coil rests inside a specially shaped magnet. When sound vibrates the membrane, the coil is vibrated as well. As the coil moves through the magnetic field, a voltage is induced across the coil. This voltage drives a current in the wire that is characteristic of the original sound.