This article proposes a new rotary transformer topology enabling reduction of leakage inductances and significant improvement of power transfer capability compared to traditional topologies thanks to its interleaved windings and resonant compensation circuits. The proposed rotary transformer features a nonferrite rotating part made of lightweight strong nonconductive and nonmagnetic composite material and a large air gap, allowing safe operation at high rotational speeds. Hence, this novel rotary transformer can enable the adoption of wound rotor synchronous machines for electric or hybrid vehicle traction. The performance of the proposed new topology was evaluated and compared to the conventional one. Significant performance improvement was confirmed. A 10-kW proof of concept prototypes was built, and the test has validated the power transfer capability with 95.9% efficiency.