An electric motor has a rotor and a stator. The rotor or the stator has arced permanent magnets that have essentially the same inner radius (IR) and outer radius (OR). In an aspect, the stator has a stator housing having a plurality of poles. Each pole includes a plurality of flat magnets affixed to an inner surface of the stator housing. In an aspect, flats on the outside of the stator housing key the stator assembly in a power tool housing. In an aspect, flat magnets are pre-magnetized, pre-assembled with alternating magnetic polarities, inserted into a stator housing, and remagnetized to a final, desired magnetic polarity configuration. In an aspect, pre-magnetized magnets and unmagnetized magnets are pre-assembled with unmagnetized magnets between magnetized magnets, the pre-assembled magnets inserted into a stator housing, and the unmagnetized magnets magnetized to a final, desired magnetic polarity configuration. In an aspect, pre-magnetized magnets are inserted between anchors inwardly extending from an inner surface of a stator housing with the anchors retaining each magnet placed in the stator housing between anchors from being angularly displaced by subsequently inserted magnets. In an aspect, pre-magnetized magnets are inserted in recesses in an inner surface of a stator housing with the recesses retaining each magnet placed in the stator housing between anchors from being angularly displaced by subsequently inserted magnets. In an aspect, each pole has at least three magnets, at least one of the magnets being thinner than the other magnets. In an aspect, the outer most magnets are made of magnetic material that is more resistant to demagnetization than at least one of the other magnets. In an aspect, the magnets of each pole are unevenly spaced over the pole In an aspect, a power tool includes such an electric motor.