Electric machine cooling arrangement and method

An electric machine connectable to a driven device of a vehicle, the electric machine including a stator and a housing (24) containing the stator. The housing (24) has at least one cooling channel (36) around at least a portion of an internal circumference of the housing (24). The cooling channel (36) is defined by a first housing portion (26) and a second housing portion (28), the first housing portion (26) being sealed to the second housing portion (28).