ABB India invests ₹140+ crore to expand its LV motor plant & launches rare-earth-free IE5 motors. A strategic move to boost local manufacturing & counter global supply chain disruptions.
In a significant move that underscores India’s growing importance in the global manufacturing landscape ABB India has announced a major investment of over ₹140 crore to expand and modernize its Low Voltage (LV) motors manufacturing facility in the country. The investment aimed at boosting capacity and technological capabilities, was announced alongside the launch of a groundbreaking product: rare-earth-free IE5 ultra-premium efficiency motors.
Strategic Investment for a Global Hub
This substantial investment is focused on reinforcing ABB’s commitment to India as a pivotal center for its global operations. “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,” said Stefan Floeck, President – IEC Low Voltage Motors, ABB.
The expansion will enhance the facility’s ability to serve both domestic and international markets, cementing India’s role not just as a consumption market but as a core innovation and production base for advanced industrial technology.
A Timely Innovation Amidst a Global Supply Crisis
The most notable aspect of the announcement is the launch of the rare-earth-free IE5 motors. This innovation comes at a critical time. In April 2025, China imposed stringent export restrictions on seven rare earth elements and magnets, which are vital for defense, energy and automotive sectors. This move created significant supply chain disruptions worldwide.
The motor industry was hit particularly hard, as rare earth elements like neodymium are traditionally essential for manufacturing high-efficiency permanent magnet motors. The shortage threatened production timelines and cost stability across various industries, including electric vehicles and renewable energy.
ABB’s new motors directly address this vulnerability. With power ratings from 45 kW to 1000 kW and compatibility with both Direct-On-Line (DOL) and Variable Frequency Drive (VFD) systems, they offer a resilient alternative. “These motors combine the reliability of proven induction technology with ultra-premium efficiency – without relying on rare-earth metals,” said Sanjeev Arora, President – Motion Business & IEC Low Voltage Motors, ABB India.
Implications for Indian and Global Industries
This dual strategy of capacity expansion and innovative product launch has several key implications:
- Supply Chain Resilience: By eliminating dependency on rare-earth imports, ABB provides Indian industries with a more secure and predictable supply of high-efficiency motors.
- Cost Stability: Shielded from the price volatility of rare earth metals, these motors can offer better long-term cost structures for businesses.
- Sustainability Leadership: The move aligns with global sustainability goals by reducing reliance on geopolitically sensitive and environmentally challenging mining processes for rare earth elements.
The announcement, made on September 25, 2025, positions ABB India at the forefront of sustainable and resilient industrial technology, offering a strategic solution to a pressing global challenge while simultaneously investing in the country’s manufacturing future.