ABB India launches rare-earth-free motors, invests ₹140 crore in expanding motor manufacturing

ABB India announced on Thursday that it has launched the IE5, a range of ultra-premium, rare-earth-free motors. Concurrently, the company said that it is investing over ₹140 crore for the expansion and modernisation of its low-voltage motors manufacturing capacity in India.

“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,” Stefan Floeck, President, IEC Low Voltage Motors, ABB, said in a statement. “With rising demand for energy-efficient motors, we’re engineering solutions that help customers outrun leaner and cleaner.”

With power ratings ranging from 45 kW to 1000 kW, ABB claims this is India’s first IE5 motor range, built on proven induction motor technology—free from rare-earth metals and engineered for high performance and reliability, even in the most demanding industrial environments.

Custom-engineered for Indian operating conditions, these motors operate seamlessly on both Direct-On-Line (DOL) and Variable Frequency Drive (VFD) systems, making them ideal for industries such as metals, cement, textiles, pharmaceuticals, food & beverage, and paper. ABB also claims that with up to 40% lower energy losses compared to IE3 motors, they deliver faster ROI, reduced total cost of ownership, and a longer operating life.

“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. “This milestone reflects our commitment to supporting Indian industries with sustainable, high-performance solutions that are built for local conditions and aligned with the nation’s push toward industrial decarbonisation.”

ABB India shares were trading 0.52% lower at ₹5210.30 apiece.

The blockade on the supply of rare-earth metals from China has prompted Indian companies, especially those in the automotive sector, to revisit their development strategies and create motors that are free from rare-earth metals, thereby reducing their dependency on imports.

The blockade by China jolted the automobile component industry, and Shardha Suri Marwah , the outgoing president of industry body the Automotive Component Manufacturers Association (ACMA), said on the sidelines of the 65th Annual Summit that despite the welcoming thaw in the relations between India and China, there is no clarity on when regular supply would resume.

“We have had issues with rare-earth magnets. We don’t have clarity on that yet. We have a long-term solution to it, but we don’t have an immediate solution to it,” said Marwah, who also serves as MD and CEO of Subros .