A contactor assembly adapted for switching power to a circuit having a power source, the contactor assembly comprising: an outer housing defining an interior compartment and including internal walls (46, 48, 50, 52) that laterally extend within the interior compartment to form an inner housing defining a protection chamber; current carrying contacts (34, 36) disposed in the protection chamber of the inner housing, the current carrying contacts including conductive bodies that protrude from the outer housing and are configured to close the circuit; a pair of arc dissipation areas (60, 62) provided at opposite ends of the protection chamber of the interior compartment, the arc dissipation areas located proximate to the current carrying contacts (34, 36); and a pair of magnets (64, 66) provided proximate ends of the dissipation areas (60, 62), wherein each magnet creates a magnetic flux or a magnetic field that extends across a respective one of the current carrying contacts, and the magnetic flux from the magnet (64, 66) directs electric arcs radiating from the respective current carrying contact (34, 36) into a respective one of the arc dissipation areas (60, 62), thereby increasing the effective distance that the electric arcs travel wherein the electric arcs are dissipated in the dissipation areas, wherein the internal walls that define the protection chamber comprise arcuate end walls (50, 52), and wherein the magnets (64, 66) are arcuate and are held in magnet receiving recesses (68, 70) formed between the outer housing of the contactor assembly and the arcuate end walls (50, 52) so that the electric arcs do not directly contact the magnets, allowing the magnets to retain their magnetic properties to achieve stable performance. an outer housing defining an interior compartment and including internal walls (46, 48, 50, 52) that laterally extend within the interior compartment to form an inner housing defining a protection chamber; current carrying contacts (34, 36) disposed in the protection chamber of the inner housing, the current carrying contacts including conductive bodies that protrude from the outer housing and are configured to close the circuit; a pair of arc dissipation areas (60, 62) provided at opposite ends of the protection chamber of the interior compartment, the arc dissipation areas located proximate to the current carrying contacts (34, 36); and a pair of magnets (64, 66) provided proximate ends of the dissipation areas (60, 62), wherein each magnet creates a magnetic flux or a magnetic field that extends across a respective one of the current carrying contacts, and the magnetic flux from the magnet (64, 66) directs electric arcs radiating from the respective current carrying contact (34, 36) into a respective one of the arc dissipation areas (60, 62), thereby increasing the effective distance that the electric arcs travel wherein the electric arcs are dissipated in the dissipation areas, wherein the internal walls that define the protection chamber comprise arcuate end walls (50, 52), and wherein the magnets (64, 66) are arcuate and are held in magnet receiving recesses (68, 70) formed between the outer housing of the contactor assembly and the arcuate end walls (50, 52) so that the electric arcs do not directly contact the magnets, allowing the magnets to retain their magnetic properties to achieve stable performance.