The Staggering Cost of a “Tiny” Gap

Motors rated above 375 kW currently account for an estimated 10.4% of global electricity demand—a figure projected to double by 2040. To understand the scale of the opportunity, ABB researchers analyzed a decade of data (2015–2025) covering more than 1,000 large synchronous motors and generators delivered worldwide from their Västerås manufacturing facility in Sweden.

The findings were eye-opening: a persistent efficiency gap exists between the equipment routinely specified by buyers and the maximum efficiency achievable with commercially available technology. Specifically, ABB found that a mere 0.2 percentage-point efficiency gap is costing global operators between $9.5 billion and $12 billion in unnecessary electricity costs over a standard 25-year asset life. Environmentally, this inefficiency generates between 60 million and 75 million tonnes of avoidable CO₂ emissions over the same period.

A Specification Problem, Not a Technology Problem

Crucially, the report emphasizes that closing this gap doesn’t require waiting for futuristic breakthroughs. The solution lies in ABB’s Top Industrial Efficiency (TIE) approach, which focuses on specifying the highest-efficiency motors using proven, commercially available technology.

While a standard large motor might operate at 98.5% efficiency, a TIE-optimized machine delivers 98.7% to 98.8% efficiency. Though a 0.2% gain sounds microscopic on paper, at the scale of global heavy industry, the impact is monumental. The typical payback period for these upgrades ranges from just a few months to three years.

David Bjerhag, Global Business Line Manager for High Speed Synchronous at ABB, highlighted the root cause of the issue:

“Industry has spent decades optimizing what happens inside a plant. Yet large motors and generators have rarely been part of that conversation, even though they run continuously for 25 years and sometimes even more, converting more energy to motion than almost anything else on site.”

Bjerhag added: “The gap between a standard machine and a TIE-optimized one is not technological. It is a specification gap. The companies closing it fastest are the ones where the engineer who selects the motor and the CFO or CSO responsible for energy performance are aligned around a single metric: total cost of ownership.”

Massive Energy Savings in an Era of AI and Data Centers

The timing of this report is critical. As the global energy transition accelerates, rising electricity demand from AI development and data centers is placing unprecedented pressure on power grids. Maximizing the utility of every kilowatt-hour is no longer just an environmental goal; it is a matter of energy security.

If the 0.2 percentage-point efficiency improvement were applied across the global installed base of similar industrial motors, it would save 4 to 6 TWh of electricity per year—enough to power roughly 750,000 to 1 million OECD households. Over a 25-year motor lifetime, those savings skyrocket to 100 to 150 TWh, equivalent to powering the entire United Kingdom for five months.

The Path Forward: Rethinking Procurement

To turn this potential into reality, ABB’s report calls for a fundamental shift in how heavy industry procures equipment. The traditional focus on upfront capital costs must be replaced by a lifecycle perspective.

The report urges industry leaders to:

• Move beyond upfront costs and embed energy efficiency directly into procurement decisions.
• Specify minimum performance levels and request optimized designs.
• Use Total Cost of Ownership (TCO) as the primary decision metric.
• Foster stronger collaboration between manufacturers, OEMs, and EPCs to ensure high-efficiency systems are specified early in the project lifecycle.

Looking Ahead

With the technology to save billions of dollars and millions of tons of carbon already readily available, the business case for closing the industrial efficiency gap is undeniable. As ABB’s report makes clear, the only thing standing in the way of a more sustainable and cost-effective industrial future is the specification.

According to industry experts consulted as part of a government-backed review of the UK’s Ecodesign Regulations for electric motors and variable speed drives (VSDs), that scenario plays out on sites across the country—and it routinely leaves the biggest energy savings untouched. The motor gets upgraded, but the system it sits in does not.

Thomas Marks, Director General at the Association of Electrical and Mechanical Trades (AEMT) , argues that focusing narrowly on motor efficiency ratings is, at best, an incomplete strategy. At worst, it can be an expensive distraction.

The Blinkered Upgrade

The efficiency classification system for motors—running from IE1 through to IE5—has undeniably driven improvements in products entering the market. Regulations have successfully phased out the least efficient motors, and the difference between, say, an IE2 and IE3 motor represents a meaningful reduction in running costs for many applications.

But specialists are increasingly vocal that chasing the next efficiency class on the motor nameplate can lead operators to miss the larger picture. As Johnathan McNamee from Hayley 24/7 explained: “The whole concept of going from IE2 to IE3, or three to four, can be a little bit blinkered. Sometimes people don’t look at the whole system enough.”

The point is not that motor efficiency standards are irrelevant—they are not. It is that the motor is just one component in a wider mechanical system, and often not the one with the most room for improvement. The gains from a motor upgrade can be dwarfed by issues such as:

• An inefficient gearbox
• A poorly aligned drivetrain
• A chain drive running at the wrong tension
• A pump that has been manually throttled to restrict flow

Fraser Lynch of Westin Drives made that point with a vivid example: “We went out, fitted an inverter and an energy-efficient motor—then noticed the pump was manually valved off to restrict flow. Just opening that valve saved far more than anything we’d just done.”

That quote from a job at a quarry captures the problem neatly. A pump had been running against a partially closed manual valve, wasting energy continuously. Opening the valve after installing a VSD cost nothing and delivered savings that eclipsed the entire investment in new equipment.

The Budget Disconnect

There is a structural reason why sub-optimal decisions keep being made, and it has little to do with technical ignorance. It comes down to how budgets are allocated. In many organizations, engineering departments are responsible for procurement and maintenance, but energy costs sit in a completely separate budget. The engineer tasked with replacing a failed motor is measured on capital expenditure, not on kilowatt-hours saved.

Andy Patten of ADC Electricals observed: “Engineering departments don’t really have that much interest in what the efficiency ratings are or the energy savings, because ultimately that doesn’t come out of their budget. Their focus is simply on what their budget is and how much the unit costs.”

The consequence is predictable: the most energy-efficient option is rarely selected at the point of purchase. The fix requires organizational change as much as technical change—aligning procurement decisions with whole-life energy costs through internal charge-back mechanisms, life-cycle cost analysis tools, or ensuring energy managers have a seat at the procurement table.

Where the Real Gains Are

Experts agree that for most motors in service, the incremental gains from moving up another efficiency class are becoming marginal. The easy wins from motor design have largely been captured. As Andy Patten put it, the industry has “reached the peak where it’s a lot of money to spend to save a fraction of a percent.”

The better opportunities now lie elsewhere. Three areas worth examining on any site:

1. Variable Speed Drives (VSDs): Adding a VSD to an application that runs at fixed speed can deliver substantial savings, often with a rapid return on investment. Pumps and fans running at full speed but with throttled output are prime candidates.
2. Right-Sizing: One of the most common sources of energy waste is oversized motors. A motor running well below its rated load operates inefficiently. Replacing it with a correctly sized unit can realize immediate savings.
3. The Wider Drivetrain: Gearboxes, couplings, belts, and bearings all introduce losses. Unlike motors, these components have seen far less regulatory attention. A thorough system audit may reveal that the gearbox or pump is a greater source of inefficiency than the motor driving it.

Measure Properly Before You Act

Any assessment of system efficiency is only as good as the data behind it. Extended monitoring that captures performance data across representative operating cycles—ideally over several weeks—provides a much more accurate picture of where energy is actually consumed. Condition monitoring technology has advanced significantly and is increasingly accessible for industrial operators of all sizes.

A Practical Framework for Equipment Owners

The takeaway is not to ignore motor efficiency standards—compliance remains a legal requirement. Instead, treat motor replacement as an opportunity for a broader conversation. When a motor comes up for replacement, ask these questions:

• Is this motor the right size for the actual load it drives?
• Is the driven equipment operating at its designed efficiency?
• Could a VSD be justified on energy-saving grounds alone?
• When were the gearbox, coupling, and transmission components last assessed?
• Who in the organization is looking at the lifetime energy cost of this asset?
• Has enough operating data been captured to understand real-world performance?

These questions cost nothing to ask. The answers could be worth considerably more than the most efficient motor on the market.

As a new article by Divyanshu Shrivastava, Global Product Manager – Industrial Fluids at Armstrong Fluid Technology, explains, the real gains in sustainability lie within the integrated pump and system technologies that power mining’s core operations. These unsung systems—responsible for dewatering, slurry transport, and process water circulation—account for a substantial share of operational energy use. And they offer some of the most immediate and cost-effective decarbonisation opportunities.

The Problem of ‘Hidden Energy’

Mining operations are, at their core, large-scale energy conversion systems. Moving rock, water, and slurry requires continuous power, often under harsh and variable conditions. Inefficiencies—like oversized equipment, throttled flows, and poorly matched duty cycles—translate directly into wasted energy and elevated emissions. These inefficiencies often go unnoticed at a headline level, yet they persist for decades, compounding both cost and environmental impact.

Addressing this ‘hidden energy’ requires a fundamental shift: from component-level fixes to system-level thinking. High-efficiency motors combined with variable speed drives (VSDs) can align energy consumption with real-time demand. Instead of operating at fixed speeds and wasting excess energy, systems can dynamically adjust output, reducing both power use and mechanical stress.

Intelligent control systems take this further. Advanced pumping systems, paired with real-time monitoring and automated flow control, can respond to changing process conditions with precision. Evidence suggests such interventions can reduce energy consumption in fluid systems by 30-40%, while delivering rapid return on investment.

Water Stewardship: A Parallel Imperative

Mining is intensely water-intensive, making water stewardship a business-critical requirement. Closed-loop water systems, which prioritise recycling over continuous withdrawal, are gaining traction. By integrating high-efficiency pumping, filtration, and treatment, mines can achieve water reuse rates of 50-80% , dramatically lowering freshwater intake and operational risk.

Real-time monitoring is central to this transformation. Intelligent water management systems with sensors and telemetry provide continuous visibility into flow, pressure, quality, and storage levels. This enables proactive decision-making—preventing over-pumping, detecting leaks, and optimising distribution.

Digitalisation as the Connective Tissue

The integration of IoT and AI is reshaping how mining systems are managed. Historically, operations have been reactive, responding to failures as they occur. Today, predictive models anticipate issues before they escalate, enabling targeted maintenance and reducing unplanned downtime.

Predictive maintenance, driven by continuous data analysis, identifies patterns of wear and performance degradation. This improves reliability, ensures optimal efficiency, and extends asset life—reducing the embodied carbon in replacement equipment. Fewer energy-intensive restarts and less wasted power contribute to a more sustainable and cost-effective operation.

Enabling, Not Replacing, the Energy Transition

These operational improvements are not a substitute for large-scale energy transition initiatives; they are an enabler. An electric haul truck powered by renewable energy still depends on a network of pumps, conveyors, and processing equipment. If these systems are inefficient, they dilute the overall impact of electrification.

Similarly, integrating renewable energy introduces variability in power supply. Intelligent systems that can adapt to fluctuating energy availability—by modulating demand in response to supply—become essential. In this context, system efficiency is about enhancing flexibility and resilience.

The Future is Integrated

Looking ahead, the next phase of decarbonisation will be defined by integration. The boundaries between energy systems, water systems, and digital platforms will continue to blur. Integrated control platforms could coordinate water management and energy consumption in real time, aligning pumping schedules with renewable energy availability. AI-driven models could optimise entire process chains, balancing throughput, energy use, and water consumption.

This level of integration demands a mindset that views sustainability as a driver of innovation and efficiency. It requires collaboration across engineering, data science, and environmental management.

Ultimately, mining companies that succeed in this transition will recognise that net zero is not achieved through isolated interventions, but through the cumulative effect of thousands of operational decisions. By embedding efficiency into the fabric of their operations—across fluid systems, water management, and digital infrastructure—they can move beyond aspiration to execution, becoming more resilient, competitive, and sustainable.

That paradigm just shifted.

ABB has announced the launch of the world’s first magnet-free IE6 ultra-premium efficiency motor certified for hazardous areas—a breakthrough that delivers class-leading energy performance without rare earth magnets, while maintaining full compliance with ATEX, IECEx, and other explosive atmosphere standards.

Announced on May 6, 2026, this isn’t just a product launch. It’s a strategic signal: The future of industrial motion is efficient, resilient, and responsibly engineered.

Why This Matters: Three Converging Challenges Solved

For operators in oil & gas, chemical processing, mining, and pharmaceuticals, this motor resolves a long-standing tension: You no longer have to choose between efficiency, sustainability, and safety.

Technical Spotlight: How Magnet-Free IE6 Works

ABB’s breakthrough combines two advanced technologies:

Synchronous Reluctance (SynRM) Architecture

• No permanent magnets: Rotor uses optimized steel laminations to create magnetic reluctance torque
• High power density: Advanced electromagnetic design achieves IE6 efficiency without rare earth materials
• Robust construction: Simplified rotor mechanics enhance reliability in harsh environments

Hazardous Area Engineering

• Thermal management: Enhanced cooling and temperature monitoring prevent ignition-risk surface temperatures
• Spark containment: Sealed enclosures and certified cable entries maintain Ex integrity under fault conditions
• Certified integration: Compatible with ABB’s hazardous-area VFDs, sensors, and control systems for end-to-end compliance

“This motor represents a fundamental rethinking of how we deliver efficiency in the most demanding environments. By eliminating rare earth dependencies without compromising performance or safety, we’re helping customers decarbonize operations while strengthening supply chain resilience.”
— ABB Motion Leadership

Why “Magnet-Free” Delivers Strategic Value

For procurement and sustainability teams, that means: Lower risk, clearer ROI, and stronger compliance documentation—without sacrificing performance.

Applications Where This Motor Delivers Immediate Impact

Sustainability Through Responsible Engineering

This motor embeds environmental responsibility into core design:

No rare earth mining impact – Eliminates demand for neodymium, dysprosium, and associated extraction impacts
Lower operational emissions – IE6 efficiency reduces Scope 2 emissions across the motor’s 20+ year lifecycle
Simplified end-of-life – Steel-dominant construction enables straightforward recycling vs. magnet recovery complexity
Circular design – Modular components support refurbishment and upgrade vs. full replacement

In an era where ESG performance influences financing, permitting, and customer selection, responsible motor design delivers measurable competitive advantage.

Retrofit-Ready: Upgrade Without Overhaul

A critical differentiator: ABB’s magnet-free IE6 motor is designed for brownfield adoption:

Dimensional compatibility – IEC-standard frames fit existing foundations and coupling arrangements
Electrical integration – Standard voltage/frequency options; compatible with legacy and modern VFDs
Phased implementation – Replace highest-runtime motors first to maximize early energy savings
Performance validation – ABB provides efficiency testing protocols to document ROI for capital approval

No “rip and replace” required. Just intelligent upgrades that extend the value of existing infrastructure.

The Bigger Picture: Efficiency, Resilience, and Responsibility

This launch reflects three converging trends shaping industrial electrification:

For ABB, this motor isn’t just about today’s sales—it’s about positioning for tomorrow’s demand for efficient, resilient, and responsibly engineered industrial motion.