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A magneto is an electrical generator that uses permanent magnets to produce alternating current .. magneto. magneto. electrical generator. electrical generator. alternating current. alternating current. Unlike a dynamo , there is no commutator and so they can not produce direct current .. dynamo. dynamo. commutator. Commutator ( electric ). direct current. direct current. They are categorised as a form of alternator , although they are usually regarded as distinct from most other alternators , which use field coils rather than permanent magnets .. alternator. alternator. Magnetos date from the earliest days of electrical engineering .. electrical engineering. electrical engineering. Despite this , they have never been widely applied for the purposes of bulk electricity generation , for the same purposes or to the same extent as either dynamos or alternators .. electricity generation. electricity generation. Only in a few specialised cases , as described here , have they been used for power generation .