Permanent magnets are positioned along each side of the maglev vehicle. These magnetically interact with permanent magnets on the guideway to provide levitation and lateral guidance. The magnetic polarities of the vehicle and guideway magnets generate repulsive magnetic forces that suspend the vehicle and push it toward the center of the guideway. The suspension automatically opposes any external force (wind, grades, curves, etc.) that tries to displace the vehicle from its equilibrium position.

Small-scale permanent magnet maglev vehicles have been built and operated. However, for practical, long distance transport systems, permanent magnets are not practical. The cost of permanent magnet guideways is too great. Moreover, the clearance between the vehicle and the guideway is a fraction of an inch. The cost of constructing a guideway to the requisite tolerances, its vulnerability to foreign objects (trash, wind borne debris, etc.) and the problems of ice and snow buildup, make it impractical for high speeds travel.