This document discusses electric drive technology trends, challenges, and opportunities for future electric vehicles. It summarizes the US Department of Energy's 2025 targets for electric passenger vehicles, which aim to significantly increase power density and reduce costs and size of electric traction drives. The document then reviews recent trends in inverter and electric motor designs that use new wide-bandgap semiconductor and magnetic materials to improve performance and meet these aggressive 2025 targets. Specifically, it explores how silicon carbide and gallium nitride power devices, as well as new winding, lamination, and permanent magnet materials, are enabling higher speed, power density, and efficiency electric drives.