Air-cored, axial flux permanent-magnet (AFPM) machines have magnetic and mechanical characteristics considered to be ideal for compact high speed electric power generation applications. To date, research on high speed AFPM machines is primarily from a mechanical perspective, with emphasis on higher power level applications such as in hybrid vehicles. Recently, there has been an increasing interest in man-portable mobile power sources with a power envelope of around 1kW, for mission critical applications. In this paper, a high speed air-cored surface mounted AFPM machine with circular magnets and coils is proposed. Comprehensive theoretical analysis and three-dimensional (3-D) electromagnetic finite element analysis (FEA) are developed to evaluate the performance of the machine. In addition, the rotor's mechanical stresses developed by high rotational speed are evaluated to ensure mechanical integrity. Finally, a prototype machine is developed for validation. Both the experimental and predicted results demonstrate that the proposed generator possesses distinct advantages over other systems, such as high efficiency, high power factor, and a simple and robust structure that offers a high degree of technology readiness.