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Demand for supplying contactless or wireless power for various applications, ranging from low-power biomedical implants to high-power battery charging systems, is on the rise. Inductive power transfer (IPT) is a well recognized technique through which power can be transferred from one system to another with no physical contacts. This paper presents a novel bidirectional IPT system, which is particularly suitable for applications such as plug-in electric vehicles (EVs) and vehicle-to-grid (V2G) systems, where two-way power transfer is advantageous. The proposed IPT system facilitates simultaneous and controlled charging or discharging of multiple EVs through loose magnetic coupling and without any physical connections. A mathematical model is presented to show that both the amount and direction of power flow between EVs or multiple systems can be controlled through either phase or/and magnitude modulation of voltages generated by converters of each system. The validity of the concept is verified by theoretical analysis, simulations, and experimental results of a 1.5-kW prototype bidirectional IPT system with a 4-cm air gap. Results indicate that the proposed system is an ideal power interface for efficient and contactless integration of multiple hybrid or EVs into typical power networks.