The present invention provides an encapsulated magnet assembly, comprising (a) a magnet disposed within a housing, said housing comprising at least one wall and defining at least one aperture; and (b) a housing cover; the housing cover comprising a first portion made of a magnetic material and a second portion made of a non-magnetic material, wherein the housing cover is configured to hermetically seal said aperture, the first portion being fixedly attached to the second portion wherein a point of attachment is heat treated; and wherein the housing wall is formed of the non-magnetic material and is fixedly attached to the second portion of the housing cover. In one embodiment, the magnet of the encapsulated magnet assembly is a permanent magnet, and in an alternate embodiment an electromagnet. In one embodiment the encapsulated magnet assembly is a component of a stator-rotor assembly.