A rotor assembly for use in an electric motor or generator where the mass of the rotor assembly is reduced with respect to conventional rotor assemblies. In addition, the rotor assembly is configured to be scalable to different sized electric motors. Within the rotor assembly, the rotor hub, the shaft, and the permanent magnets can independently or collectively be modified to have a reduced mass. In one aspect, a portion of the rotor hub adjacent to the shaft is configured with passages and spokes. In another aspect, an intermediate hub with lightening holes is provided between the shaft and the rotor hub. In yet another aspect, a large diameter hollow shaft replaces a portion of the rotor hub. In yet another aspect, the permanent magnets are configured to have an arc-shape, which permits the thickness of the magnets to be reduced without reducing the efficiency of the magnets.