Electro-mechanical batteries have important advantages as compared with chemical batteries, especially in low earth orbit satellites applications. High speed slotless external rotor permanent magnet machines are used in these systems as Motor/Generator. Proper material and structure for space applications are introduced. A simplified analytic design method is given for this type of machines. Finally, the optimization of machine in order to have maximum efficiency and minimum volume and weight are given in this paper. Particle swarm optimization is used as the optimization algorithm and the finite element-based simulations are used to confirm the design and optimization process and show less than 1.2% error in parametric design.