In general, radial gap motors employing neodymium sintered permanent magnet (Nd sintered PM) are used to achieve high torque density in many applications. However, the motors are not suited to a flat, disk-like shape because the dead space, such as the coil ends, occupies most of the motor volume. Therefore, axial gap motors are frequently used for flat shape instead of radial gap motors. Nd sintered PM is a well-known high-performance magnet that has high residual magnetic flux density, but eddy current loss easily occurs in the magnet because of its high conductivity. In axial gap motors for industrial applications, it is difficult to take measures against eddy current loss of Nd sintered PM in terms of cost. Therefore, general axial gap motors employing Nd sintered PM often have unsatisfactory characteristics, such as low efficiency, even though the motor produces high torque. On the other hand, radial gap motors can take measures to suppress eddy current in PMs easily if radial gap motors employ interior permanent magnet structure. Accordingly, this paper discusses an axial gap motor employing neodymium bonded permanent magnet (Nd bonded PM) for flat shape. Compared with Nd sintered PM, Nd bonded PM has lower residual magnetic flux density, but also lower cost. In addition, Nd bonded PM has extremely low eddy current loss due to its low conductivity. It is found from three-dimensional finite element analysis and experimental results that the axial gap motor employing Nd bonded PM can achieve higher torque and higher efficiency compared with the radial gap motor employing Nd sintered PM with the same PM weight and a flat shape.