Homopolar inductor machine (HIM) has been applied in the field of flywheel energy storage system (FESS) due to its merits of simple structure, high reliability, and low idling losses. However, the HIM features unipolar air-gap flux density, which makes its power density lower than that of the electrical machine with bipolar air-gap flux density. Addressing this issue, a novel outer rotor homopolar inductor machine (OR-HIM) is proposed in this article. First, the special structure and operation principle of the OR-HIM are illustrated. Then, the unit motors of the OR-HIM are obtained and investigated based on the magnetic equivalent circuit method to facilitate the design. Moreover, the performance indexes, including power density, output characteristics, losses, and rotor stress of the OR-HIM, are fully analyzed. Finally, a 13-kW prototype is designed, manufactured, and tested. The back electromotive force, load voltage, output torque, and efficiency are measured and compared with those obtained by the finite element analysis. The results indicate that the proposed OR-HIM is a promising candidate for the application of FESS.