ABB’s Plan to Expand Motor Production, India-made Rare Earth-free IE5 Motors Launch

ABB has committed an investment of Rs. 140 crore towards LV motor manufacturing in India. This entails modernisation and expansion of the company’s existing motor production, upgradation of warehouses, and office facilities.

Moreover, the company has launched its India-made rare earth-free IE5 LV motors, which are based on induction rather than permanent magnets. This launch marks the first instance of such motors being produced locally in India.

ABB’s to Expand Motor Manufacturing by 23% by 2029

ABB’s aforementioned expansion will be directed towards expanding LV motor manufacturing capacity by 23% from the current capacity of 26,300 motors per month. This capacity addition will be done by 2029, and targets the expansion of its flame proof, smoke vent, and roller table motor product sub-categories.

Further, the company will finance this expansion through its internal accruals.

As of now, ABB has two motor manufacturing facilities in India. One of these is at Faridabad, Haryana, while the other is located at Peenya near Bengaluru.

Speaking about this investment, Mr. Stefan Floeck, President – IEC Low Voltage Motors, ABB, expressed, “Our strategic investment is not just about building capacity — it’s about reinforcing our long-term vision for India as a key global manufacturing hub”.

ABB’s India-made IE5 LV Motors

ABB has launched its India-made IE5 ‘ultra-premium efficiency’ LV motors, which have power rating ranging from 45 KW to 1000 KW. The distinctive feature of these motors is that they do not use any rare earth elements, thus making their production less susceptible to global supply chain variations.

Longer Life, Faster ROI, 40% Less Power Losses Compared to IE3 Motors

ABB asserts that its new India-made IE5 rare-earth free motors offer significant advantages as compared to IE3 motors. Power losses of IE5 motors are 40% lower than those of IE3 motors which make them significantly more efficient. Moreover, ABB claims that the newly launched India-made IE5 rare earth-free motors offer a quicker Return on Investment (RoI) and longer life.

“Custom-engineered for Indian operating conditions, these motors operate seamlessly on both Direct-On-Line (DOL) and Variable Frequency Drive (VFD), making them ideal for industries such as metals, cement, textiles, pharmaceuticals, food & beverage, and paper”, reads ABB’s official release.

Why are IE5 Motors & Rare Earth-Free Motors in the Spotlight?

Importance of High-Efficiency Motors in Indian Industry

In October 2017, Government of India introduced new regulations which made it mandatory for industries to shift to IE2 or higher standard of motor efficiency. As per ABB, motors account for about 65% of the powe requirement of the industry. Therefore, opting for more efficient industrial motors can be seen as a significant step towards industry’s decarbonisation.

In fact, an April 2025 report by PowerLine mentions that due to the advantages offered by high-efficiency motors, several industries are moving to IE3 and IE4 motors. The report adds that through this, they save up on power costs which can enable companies to even gain a competitive advantage in the cost-driven Indian market.

Considering this, ABB’s India-made IE5 motor launch gains more significance, as they are much more efficient than the prevalant IE2 and IE3 motors.

Need for Rare Earth-Free Motors

There is a rising trend towards developing motors which do not use rare earth elements. The major reason for this are supply-chain difficulties. In April 2025, China, which accounts for about 70% of the world’s rare earth production, restricted their supply. Even though these restrictions were lifted in August 2025, the restricted supply of rare earth elements became a matter of concern for the Indian industry, as rare earth magnets are frequently used in high-efficiency motors. Therefore, ABB’s India-made rare earth-free LV motors in IE5 efficiency comes as a major breakthrough.

About ABB India: ABB India Ltd (Formerly Known as ABB Ltd), founded in 1949, is one of the World’s leading engineering companies and a direct subsidiary of Switzerland-based ABB Group. It has 27 factories in four Indian cities, namely Vadodara, Nashik, Bengaluru, and Faridabad.