The present invention is a method of compressing lamination stacks for a permanent magnet rotor. The method includes the steps of providing a plurality of stages of lamination stacks and magnet carriers on a rotor shaft to form an assembly; positioning a spacer between each of the lamination stacks of each of the plurality of stages; and fitting a retainer plate with a groove at each end of the assembly. The groove allows a centrifugal force to deflect a top of the retainer plate inward toward the spacers and the spacers are milled to a size that is slightly wider than an axial gap between the lamination stacks of each stage. The groove on the retainer plates has a depth and radial position that determines the extent to which the top of the retainer plate deflects towards the spacers.