ABB Channels $170 million into U.S. Automation and Electrification Businesses

April 10, 2023 by Stephanie Leonida

ABB has announced an investment of $170 million to enhance its manufacturing capabilities in electrification and automation in the U.S., helping the nation achieve supply chain independence and a clean energy future.

Swiss-Swedish multinational corporation ABB is making a series of investments in the U.S. market amounting to about $170 million. This investment will go toward its automation and electrification businesses to create top-tier, skills-focused jobs to meet the rising demand of industry-leading customers while supporting the reshoring of production and the clean energy transition.


ABB is investing in the future of America’s economy by supporting its automation and electrification businesses

ABB is investing in the future of America’s economy by supporting its automation and electrification businesses. Image used courtesy of ABB


Supporting the Clean Energy Transition

ABB’s U.S. market is its largest, totaling 24 percent of its yearly revenue. ABB sells 85 percent of its products in the U.S. Locally sourcing these products strengthens the U.S. supply chain and keeps good-paying manufacturing jobs in America. Recent legislation provides ABB with the drive to invest in new technologies, distribution systems, and improved manufacturing capacity to stay competitive and satisfy customer needs.

The Inflation Reduction Act was signed into law in 2022 and aims to reduce inflation and promote clean energy. The Act provides incentives for businesses to invest in clean energy technologies, such as solar and wind power, and requires the federal government to set emissions reduction targets for each state. It also includes tax credits for businesses that invest in clean energy projects and establishes a Clean Energy Trust Fund to support research and development of new green technologies. This Act is an important step towards reducing carbon emissions, creating jobs, and helping the U.S. become more energy independent.

ABB has taken several initiatives to invest in clean energy and reduce its environmental impact, which aligns with many national policies and targets related to sustainable energy. Some of these initiatives are:

  • Offering sustainable and energy-efficient solutions.
  • Developing renewable energy solutions, such as solar inverters, wind power converters, and energy storage systems. These products help to increase the share of renewable energy in the global energy mix.
  • Promoting electric mobility through the provision of charging solutions for electric vehicles (EVs), including fast charging stations for cars and buses.
  • Partnering with governments and organizations like the World Wildlife Fund (WWF) and the United Nations Development Programme (UNDP) to support the development of renewable energy projects.


Reshoring production and sourcing products locally are key steps in shoring up and growing America’s economy.

Reshoring production and sourcing products locally are key steps in shoring up and growing America’s economy. Image used courtesy of ABB


Securing the U.S. Semiconductor Supply Chain

The CHIPS and Science Act was signed into law August 9, 2022 with the purpose of increasing investment in semiconductor manufacturing and research in the U.S. to address concerns about the country's reliance on foreign sources of semiconductors and the potential impact on national security and economic competitiveness.

ABB is a major supplier of automation and control systems used in the semiconductor industry. The company's products and solutions play a vital role in the manufacturing of semiconductors. By providing energy-efficient and sustainable solutions for semiconductor manufacturing processes, ABB contributes to a more sustainable and secure semiconductor supply chain in the U.S.


A rendering of ABB's manufacturing facility in New Berlin, Wisconsin.

A rendering of ABB's new manufacturing facility in New Berlin, Wisconsin, scheduled for completion by 2024. Image used courtesy of ABB


ABB Investment Projects

ABB will be opening the Drives and Services manufacturing facility in New Berlin, Wisconsin. The company intends to expand upon its existing customer services and increase the production volume of industrial electric drives. ABB is investing around $100 million into the greenfield project which will replace an existing facility nearby. The project is planned for completion at the end of 2024.

ABB has also invested $40 million into the building of a manufacturing plant (in Albuquerque, New Mexico) for Elastimold, a supplier of pre-molded cable accessory modules. This investment is hoped to help create a more stable grid infrastructure for the U.S. ABB is also funneling an investment of $20 million into the expansion of its robotics headquarters and manufacturing facility in Auburn Hills, Michigan.

Another investment includes the launch of a $2 million packaging and logistics facility for full-circle robotic automation solutions. The facility will support retail, warehouse and distribution, and logistics industries. ABB has also opened a manufacturing facility for EV chargers and aims to generate 10,000 chargers a year. This e-mobility investment will create chargers with 20 to 180 kilowatts in power output which will be used to help operators build an up-to-date national charging infrastructure.


Electrification and Automation

These are just some of the investments that ABB is undertaking, intending to shore up U.S. supply chains and encourage wider adoption of electrification and automation technologies while prevailing to help America achieve a clean energy future.