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Modern electrical generators make use of Faraday's law to convert mechanical energy in the form of motion into electrical energy. Mechanical energy is used to turn large magnetic coiled in electrical wire, and as the magnets and thus magnetic field moves, an electrical current is induced in the wire producing electricity. The actual mechanical energy can be produced in a variety of ways, often by combustion of a fuel, utilizing flowing water, or heating water into steam that will push against a turbine.

The reverse process of going from electrical energy to mechanical energy in an electric motor utilizes a similar process. The application of a current to a coiled wire will produce a magnetic field that will oppose the field of a nearby permanent magnet, resulting in a torque on the coil producing rotational mechanical energy. This rotational energy can later be converted into nearly any other form of mechanical energy by some other intermediary deice.

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