This paper is a report on master thesis project conducted in cooperation with SMARTMOTOR AS and NTNU. The research for electrical downhole drilling machine has developed for decades. Permanent Magnet is a new addition in this arena. SMARTMOTOR AS built a downhole drilling machine which is needed to compare with machines from other competitors of the market. This machine has 10% cogging torque over its rated torque. The reason of this cogging torque and possible solutions has been investigated throughout this project. And a new geometry and design of the rotor (with 10 poles) is suggested for the machine in this report. Measurement shows the newer design is less sensitivity to eccentricity. at nominal load and speed. Lastly, flux weakening and magnet working point of the machine also investigated. In this report it is concluded that out of 3 experimental designs, the design with less epoxy and more magnet offer better performance regarding voltage waveform and vibrations. It is superior in terms of torque per weight. The other designs however allow easier manufacturing, better efficiency and shorter length of machine. It It is therefore concluded that the last design with less epoxy can be a suitable alternative rotor design for the built up machine which can reduce the existing cogging torque upto 83.4%. The end part of the paper describes a template-style of a generic electromagnetic modeling tool for the analysis and optimization of Electrical Machines. Further accurate virtual prototypes can then be produced to help designers provide answers on the performance of specific machine designs rapidly. And further investigations to identify the design characteristics of the perfect machine. A two and three-dimensional FEA model for a generator and motor can be created in minutes, investigations to identify the design characteristics of the perfect machine. Optimization tool assists designers to find the 'best' solution automatically. The tool is structured to allow creation and analysis of customized geometries, including special proprietary features. A new Matlab-based script is developed in order to handle the optimization process of electrical machine which will be used in the finite element analysis. The script saves the designer’s valuable time. It is concluded that ‘fmincon-constrained nonlinear minimization’ method in new optimization tool of MATLAB is more accurate and less time consuming compared to the method for optimization. The report explains a modern design procedure which uses both analytical and numerical analysis. The numerical analysis uses finite element analysis that is performed in Comsol mostly.