Increasing the number of electric-drive vehicles (EDVs) on America's roads has been identified as a strategy with near-term potential for dramatically decreasing the nation's dependence on oil - by the U.S. Department of Energy, the federal cross-agency EV-Everywhere Challenge, and the automotive industry. Mass-market deployment will rely on meeting aggressive technical targets, including improved efficiency and reduced size, weight, and cost. Many of these advances will depend on optimization of thermal management. Effective thermal management is critical to improving the performance and ensuring the reliability of EDVs. Efficient heat removal makes higher power densities and lower operating temperatures possible, and in turn enables cost and size reductions. The National Renewable Energy Laboratory (NREL), along with DOE and industry partners is working to develop cost-effective thermal management solutions to increase device and component power densities. In this presentation, the activities in recent years related to thermal management and reliability of automotive power electronics and electric machines are presented.