One of the major problems associated with the design and application of active magnetic bearings is excessive heat. Heat is generated by two primary mechanisms. The first source of heating comes from eddy current loss. Eddy currents are electrical currents driven within conductors by a dynamic magnetic field located in the conductor. Eddy current losses in a magnetic bearing are caused by the rate of change of the magnetic field. The relative motion creates a rotational flow of current within the conductor, which leads to a loss of efficiency. The second heat source comes from the resistance of the wire in the coils. Because copper wires have a resistivity that increases with temperature, heating can get out of hand very quickly if there is no way to get rid of the excess heat. Excessive heat from a magnetic bearing can also be caused by lack of lubrication. Although the lubrication-free operation of a magnetic bearing ensures a wear-free system, there is nothing that can cool the bearing. Heat buildup can create many serious problems such as destroying magnetic bearings by breaking coil insulation and causing short circuits. Excessive heat can also cause the inability to support the desired load in the application. Another major problem produced by magnetic bearings is limited fault protection. Machines with magnetic bearings always install a spare set of bearings, which are usually rolling bearings. These stock bearings can produce a variety of problems. The positioning of the support bearings can change the dynamic behavior of the machine rotor. Even spare bearings have a very limited life. When a magnetic bearing fails, the spare bearing must recover speed relative to the rotor in just a millisecond. Typically...... half of the paper...... inadequate direct stiffness of ing was also mentioned earlier. Low direct stiffness of a bearing occurs when clearance is increased to accommodate conventional support bearings. This causes the magnetic bearings to provide a large surface area to support a moderate load. (Add innovation to direct low stiffness) Conclusion Magnetic bearings have provided us with new ways and innovations to operate various systems such as space equipment and energy storage systems. Magnetic bearings have given people a way to operate systems unlike any other bearing system. They have implemented a lubrication and maintenance free system, which in turn provides a much more economical and defect-free system. Although magnetic bearings are not perfect and are limited in specific areas, we believe they have the potential to revolutionize the field of mechanical power transmission.