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Factory logistics

Enso plans to build US$500m carbon-neutral tire factory in the US

Izzy WoodBy Izzy Wood28th June 20242 Mins Read
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Enso, a tire technology company focused on electric vehicles (EVs), has signed a letter of interest (LOI) with the Export-Import Bank of the United States (US EXIM Bank) to establish America’s first carbon-neutral tire factory.

This facility, valued at US$500m, will produce 5 million EV tires annually by 2027, eventually creating 600 jobs and potentially expanding to 2,400 jobs as production scales to 20 million tires per year. The factory will be carbon-neutral without purchased offsets, using carbon-neutral raw materials, building materials and 100% renewable energy.

Announced at the SelectUSA Investment Summit in Washington DC which took place June 23-26, potential factory locations include Colorado, Nevada, Texas and Georgia. The company says the US market, particularly in California, presents an opportunity due to its substantial EV consumer base and regulatory efforts to improve tire efficiency and reduce emissions.

Enso’s CEO, Gunnlaugur Erlendsson, highlighted the US as an ideal location for the factory: “The US 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 US tire industry.”

The factory will address the issue of tire imports in the US, where a majority of tires are currently imported. It is designed to enhance domestic production capabilities and meet consumer demand for environmentally friendly tires.

Enso suggests that surveys indicate that nearly half of Americans would prefer tires made in the US and those that use fewer toxic materials, produce fewer emissions and are made from recycled materials.

The company says it aims to increase the success of EVs and reduce tire pollution, thereby saving costs for American consumers.

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