Considering the growing interest in increasing performance and efficiency of driveline components of modern electric vehicles, this work aims to analyze and report the wear mechanisms and notable enhancement of the lubrication of electrified contact interfaces by inert gas atmospheres. Systematic tribological studies were conducted on AISI 52100 steel test pairs using driveline lubricants under unelectrified and electrified conditions in ambient air and dry N2. Test results showed that in ambient air and electrification, the formation of iron oxides (in particular hematite) was most dominant and gave rise to severe abrasive wear regardless of the lubricant type being used. In dry N2, however, the tribo-oxidation was suppressed but the formation of a carbon-rich tribofilm was favored (especially under electrified conditions). Such a shift from surface oxidation to carbonaceous film formation resulted in dramatic reductions (by factors of 8 to 10) in the wear of test pairs.