In high speed permanent magnet (HSPM) machines, the computation of magnet eddy current loss is essential as these losses significantly affect the temperature of the permanent magnet (PM) and electromagnetic performance and can result in irreversible demagnetization of the PM. Several techniques have been adopted to minimize the eddy current loss of the PM; however, superior performance has not been achieved yet. In this paper, the design characteristics of the HSPM machine are analyzed. The PM is covered by a titanium sleeve to retain the PM on the rotor and to further reduce the eddy current loss of the magnet. The undesirable harmonics of the airgap flux density are minimized, which reduces the eddy current loss in the solid PM and rotor. Two existing models, with and without auxiliary slots, are examined and compared with the proposed design having a titanium-based retaining sleeve. The analysis reveals that the eddy-current loss, cogging torque, and iron losses of the PM are reduced by 82%, 73%, and 44.7%, respectively, in the proposed model; however, a marginal increase is observed in the average rated torque profile and open circuit flux linkage.INDEX TERMS Auxiliary slot, eddy current losses, finite element analysis, high speed machine, iron loss, permanent magnet, sleeve, spatial harmonics.