ENSO TO BUILD $500M, FIRST OF ITS KIND CARBON-NEUTRAL TYRE FACTORY IN AMERICA

ENSO, the tyre technology company that makes better tyres 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 groundbreaking carbon-neutral tyre factory in America. U.S.-based technology partners Rockwell, global sustainable development firm Arup and US-based investors 8090 Industries and Galway Sustainable Capital, are supporting ENSO.

The first-of-its-kind tyre factory will be carbon-neutral without purchased offsets, utilising carbon-neutral raw materials, building materials and 100% renewable energy. In its first phase, the factory will produce 5 million EV tyres by 2027 and create 600 jobs, rising to 2,400 jobs when built out to full production capacity of 20 million tyres – 8% of America’s total annual tyre market. The ENSO technology campus will integrate research and development with production under one roof to accelerate and scale innovation.

Announced at the SelectUSA Investment Summit in Washington DC, potential factory locations include Colorado, Nevada, Texas, and Georgia, with other states in consideration. The U.S., particularly California, has a significant EV consumer base and is leading efforts to regulate tyre efficiency and emissions, making the U.S. the ideal market for ENSO.

ENSO CEO Gunnlaugur Erlendsson said, "The U.S. is the best place for ENSO to establish its first carbon-neutral tyre factory. With strong regulatory support and a significant market opportunity, we are committed to bringing our innovative, low-emission, low-cost tyres to American consumers. This factory will make tyres more affordable, reduce tyre pollution, create great jobs and drive sustainability in the U.S. tyre 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 tyre industry. Programs such as the California Energy Commission’s (CEC) Replacement Tyre Efficiency Program and the California Environmental Protection Agency’s (CalEPA) efforts to control toxic chemicals such as 6PPD in tyres align with ENSO's goals, by setting out minimum efficiency and environmental standards for both new and aftermarket tyres.

Tyres are critical to keeping America’s economy moving. Without tyres, all 275 million vehicles in the U.S. would grind to halt. Currently, the majority of tyres sold in the U.S. are imported. This factory will help reduce America’s reliance on imports, enhancing domestic production capabilities. There is a big consumer appetite in the U.S. for ENSO’s tyre innovation. Nearly half (47%) of Americans would be more encouraged to buy a set of tyres if they were made in the U.S., 46% if they used fewer toxic materials, 43% if they produced fewer emissions, and 41% if they were made from recycled materials.

ENSO’s mission is to make EVs more successful and reduce tyre pollution, saving costs for every American. ENSO’s tyres already increase EV range by 10% and reduce particulate matter emissions by 35%. By producing fewer, longer-lasting tyres with better technology, ENSO aims to cut tyre pollution. 

Tyre pollution is a significant issue, responsible for six million tons of particulate matter emitted globally each year. Tyre pollution is a major contributor to ocean microplastic pollution and local air pollution, while tyre production is carbon intensive and creates huge amounts of waste at the end of life. ENSO, a finalist in the ‘Clean Our Air’ category of The Earthshot Prize, the prestigious annual environmental award established by Prince William, is leading the way on environmental standards in the tyre industry. ENSO is leading efforts to decarbonise the tyre industry and 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.

The U.S. has a major market opportunity to lead the transformation of the tyre industry and to incentivise EV adoption. America doesn't make enough tyres, and ENSO’s factory will be a major step toward achieving these goals, ensuring economic benefits and environmental sustainability for American consumers. This factory therefore represents a significant investment in setting a new standard for the future of American tyre manufacturing.