The art of the successful design of high-speed electrical machines comes with many challenges in the mass, size, reliability, and energy efficiency. Material engineering of electrical machines has been identified as a key solution for higher power dense electric drivetrains. One of the main challenges at high speed is the eddy-current losses in the active electromagnetic parts, especially magnetic materials and permanent magnets (PMs). This study is devoted to the selection of PM rotor materials using multidisciplinary design optimization for a high-speed electric drivetrain. Beside AC loss minimization, more disciplines are considered, such as the minimization of weight, and cost. Different laminations are investigated with different magnetic properties as well as cost. Additionally, different PMs are optimized considering low-cost ferrite and high-coercivity permanent magnets (HCPMs). Moreover, the optimal materials are identified which have the best balance between loss, weight, cost, ripples. Finally, different rotor designs are prototyped, assembled, and tested using the same stator configuration. Also, the best rotor design is selected, and the electromagnetic performance is measured and compared with conventional designs. The optimal design results in 8% extra torque with at least 20% weight reduction.