There is no unified material selection principle for ultra‐low temperature and high‐speed permanent magnet motors used in liquefied natural gas (LNG) pumps, and high rotor eddy current losses can easily lead to vaporization of the transported LNG. This article first studies the electromagnetic performance of motor structural component materials at room temperature and ultra‐low temperature environments, and proposes the material selection principles for this type of motor. Based on the experimental measurement results of material electromagnetic performance, the loss characteristics of motors under ultra‐low temperature and room temperature environments were compared. Based on the mechanism of rotor eddy current loss and considering the influence of environmental temperature on the material properties of motors, three optimization methods for rotor eddy current loss are proposed. The impact of different suppression measures on rotor eddy current loss is revealed. The suppression of magnetic conduction harmonics can be achieved by opening stator auxiliary slots and optimizing their size and position. High conductivity metal shielding layers are used and their materials and sizes are optimized, And the use of magnetic slot wedges can simultaneously suppress three types of harmonics. Finally, the suppression principles of different optimization methods on rotor eddy current losses were analyzed, and the optimization effects and advantages and disadvantages of different methods were discussed, providing theoretical reference for the optimization design of high‐speed permanent magnet motors operating in ultra‐low temperature environments. © 2024 Institute of Electrical Engineers of Japan and Wiley Periodicals LLC.