Done Deals: Enso to build $500 million, first of its kind carbon-neutra tire factory in U.S

Tuesday, June 25, 2024

Enso to build $500 million, first of its kind carbon-neutra tire factory in U.S

Gunnlaugur Erlendsson

.Washington, DC -- ENSO, the 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 groundbreaking carbon-neutral tire 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 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 5 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.

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 tire 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 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.

"This factory will make tires more affordable, reduce tire pollution, create great jobs and drive sustainability in the U.S. tire industry.”