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For the purposes of this article, there are basically 2 kinds of electric motors, "brushed" and "brushless". Brushed motors have been around for about 150 years, but vast improvements in the early 1900 have left them almost unchanged since then, and for what they are, they are an excellent, efficient motors.
With the invention of the transistors in the 1960s, motor development took another step forward with the invention of the brushless motors. It is only because of higher technologies that these motors can work in a high enough efficiency to make the commercially viable because instant internal switching needs to occur.
Milwaukee of course have taken some of the early steps in this field by producing a series of brushless drills, Impact Wrenches and Hammer Drills.
In Brushed motors, there are something called brushes that make contact with a specific part of the armature of the motor, the part that spins. In a brushless motor there are no brushes, the spinning is done by using permanent magnets and and switching poles internally in the motor in order to make it spin. Here is a great video from Learn Engineering that explains in detail how this works and compares it with brushed motor ....