Enso, a tire technology company that makes better tires for electric vehicles (EVs), has signed a Letter of Interest (LOI) with the Export-Import Bank of the United States (U.S. EXIM Bank) to establish a carbon-neutral tire factory in America. Potential factory locations include Colorado, Nevada, Texas, and Georgia, with other states in consideration.
U.S.-based technology partners Rockwell, global sustainable development firm Arup and U.S.-based investors 8090 Industries and Galway Sustainable Capital are supporting Enso.
The first-of-its-kind tire factory will be carbon-neutral without purchased offsets, utilizing carbon-neutral raw materials, building materials and 100% renewable energy. In its first phase, the factory will produce five million EV tires by 2027 and create 600 jobs, rising to 2,400 jobs when built out to full production capacity of 20 million tires — 8% of America’s total annual tire market. The Enso technology campus will integrate research and development with production under one roof to accelerate and scale innovation.
“The U.S. is the best place for Enso to establish its first carbon-neutral tire factory. With strong regulatory support and a significant market opportunity, we are committed to bringing our innovative, low-emission, low-cost tires to American consumers,” said Enso CEO Gunnlaugur Erlendsson. “This factory will make tires more affordable, reduce tire pollution, create great jobs and drive sustainability in the U.S. tire industry.”
The U.S. regulatory environment strongly supports Enso’s move to America. Initiatives like the Inflation Reduction Act have transformed the automotive sector and enabled more ambitious EPA (Environment Protection Act) emissions standards, paving the way for similar advancements in the tire industry. Programs such as the California Energy Commission’s (CEC) Replacement Tire Efficiency Program and the California Environmental Protection Agency’s (CalEPA) efforts to control toxic chemicals such as 6PPD in tires align with ENSO’s goals, by setting out minimum efficiency and environmental standards for both new and aftermarket tires.
Currently, the majority of tires sold in the U.S. are imported. This factory will help reduce America’s reliance on imports, enhancing domestic production capabilities.
Enso’s tires already increase EV range by 10% and reduce particulate matter emissions by 35%, the company said. By producing fewer, longer-lasting tires with better technology, ENSO aims to cut tire pollution, which is responsible for six million tons of particulate matter emitted globally each year and is a major contributor to ocean microplastic pollution and local air pollution. The company is committed to completely phase out all fossil fuel-based raw materials from its products by 2030, replacing them with bio-based renewable and low-carbon alternatives.
