ABB's Vision to Advance Circular Manufacturing Efficiency

ABB Motion’s Drive Products division has invested in Virginia-based circular manufacturing company Molg through ABB Motion Ventures.

The investment aims to optimise the design and reusability of ABB drives by leveraging Molg’s expertise in manufacturing design.

By integrating Molg’s robotic Microfactories into ABB’s operations, the partnership seeks to streamline the assembly and testing processes, improve resource efficiency and enhance circularity in manufacturing.

“Our investment in Molg means we are part of an innovation ecosystem which develops new solutions for product circularity," comments Tuomo Hoysniemi, President of ABB Drive Products.

"This investment to develop our drives portfolio through recycling and reusing of components is aligned with our aims to increase circularity within our portfolio."

Strengthening circularity in manufacturing

ABB and Molg first established a connection in 2023 when Molg was named a winner of the ABB Accelerating Circularity Startup Challenge. Following this recognition, ABB Drive Products and Molg successfully developed a proof of concept for assembling drives using Molg’s robotics-based Microfactories.

ABB Robotics & Automation Ventures also took part in Molg’s seed funding round in October 2024, helping to scale the startup’s production capacity and address electronic waste through robotics and design.

This latest investment signals the next phase of their collaboration, focusing on scaling up these innovations.

A key reason behind ABB Drive Products’ decision to invest in Molg is the company’s strong credentials in circular manufacturing, with ABB aiming for 80% of its products to follow a full life cycle circular approach by 2030. Molg’s robotic Microfactories will support this goal by enhancing the efficiency of configured-to-order drive production through automation-driven assembly and testing.

Tuomo adds: "Molg’s Microfactories are especially suited to the ABB Drive Products’ customisable product range and will give us an increased ability to meet unique customer and market future requirements, while at the same time preserving valuable resources.”

By reusing, repurposing and recycling components, ABB is reinforcing its role in promoting a circular economy.

Aligning with ABB’s local-for-local strategy

ABB and Molg's partnership aligns with the former's broader strategy of supporting local manufacturing ecosystems.

The Swiss multinational recently announced a US$100m investment in a campus in New Berlin, Wisconsin, as part of its ‘local for local’ approach. The initiative prioritises locally-sourced materials for in-country production to better serve regional customers. It also strengthens ABB’s circularity-driven efforts by reducing waste, cutting manufacturing-related carbon emissions, and supporting supply chain resilience.

By integrating Molg’s solutions, ABB aims to enhance its ability to meet customer-specific requirements while maintaining sustainability principles. The use of robotic Microfactories will provide greater flexibility in manufacturing, allowing ABB to customise its products efficiently while minimising material waste.

Rob Lawson-Shanks, CEO and Co-Founder at Molg, concludes: "Winning ABB’s Accelerating Circularity Startup Challenge was great recognition for us and we are even more excited to continue our collaboration with ABB Drive Products within circularity and automation.

"We're thrilled to work with ABB Drive Products to design more circular products and create circular manufacturing processes for electronics to enhance supply chain resilience and ensure valuable materials are kept in circulation.”

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