ABB India Invests Rs 140 Crore, Unveils Rare-Earth-Free IE5 Motor

ABB India has announced an investment of more than ₹140 crore to develop and modernize its Low Voltage motors manufacturing facility in India, further establishing India's position as a global innovation and advanced engineering solutions hub.

The company also announced its IE5 ultra-premium efficiency motors, including a rare-earth-free version that represents a first in industrial applications.

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.

Also Read: Advancing India’s Manufacturing Realm Toward Global Resilience

“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 new IE5 motors are offered in power ratings from 45 kW to 1000 kW and are designed to deliver optimal efficiency seamlessly operating on Direct-On-Line (DOL) and Variable Frequency Drive (VFD) systems. The timing of this announcement is particularly pertinent as the global supply chain of high efficiency motors suffers significant strain.

In April 2025, China announced strict export restrictions on 7 rare earth elements and magnets, which have applications in the defense, energy and automotive sectors. The announcement created disruptions throughout the industry, especially with respect to motor manufacturing, as neodymium and dysprosium have been key elements in the production of permanent magnet motors.

By launching a rare-earth-free IE5 motors, ABB India is enabling industries a sustainable and cost-effective alternative to the global supply chain crisis.