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This is Faraday’s homopolar motor. It doesn’t work like the standard motor. Rather the current passes through the magnet perpendicular to its magnetic field. The resulting force that spins the magnet and paper clip is perpendicular to both the current and magnetic field.  The magnets on the top hold the conducting wire on the top, as well as, supply more force to hold the paper clip on the bottom.

Homopolar Motor