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ENSO to establish $500 million carbon-neutral tyre factory in the US

Updated: Jun 25

Image credit: ENSO

ENSO, the pioneering tyre technology company, is set to revolutionise the tyre industry with plans to establish a groundbreaking carbon-neutral factory in the United States. This move follows the signing of a Letter of Interest with the Export-Import Bank of the United States.

Supported by US-based technology partners Rockwell, global sustainable development firm Arup, and investors 8090 Industries and Galway Sustainable Capital, ENSO's venture will create the first tyre factory of its kind. The facility will utilise carbon-neutral raw materials, sustainable building materials, and 100% renewable energy.

In its initial phase, the factory aims to produce 5 million tyres for electric vehicles (EVs) by 2027, generating 600 jobs. At full capacity, production will hit 20 million tyres annually, accounting for 8% of the US tyre market and creating 2,400 jobs. The factory will also house a research and development campus, accelerating innovation in tyre technology.

Announced at the SelectUSA Investment Summit in Washington DC, potential locations for the factory include Colorado, Nevada, Texas, and Georgia. The US, particularly California, provides a significant EV consumer base and stringent regulations on tyre efficiency and emissions, making it an ideal market for ENSO.

Image credit: ENSO

US regulatory support, exemplified by the Inflation Reduction Act and stringent EPA standards, aligns with ENSO’s objectives. Initiatives such as California’s Energy Commission Replacement Tire Efficiency Program and the California Environmental Protection Agency's efforts to control tyre chemicals complement ENSO's mission of sustainability.

Tyres are indispensable to the US economy, yet most are currently imported. ENSO’s factory will bolster domestic production, reducing reliance on imports. There is a strong consumer demand for ENSO’s innovative tyres, with nearly half of Americans indicating a preference for tyres made in the US, using fewer toxic materials, producing fewer emissions, and being made from recycled materials.

ENSO’s tyres enhance EV range by 10% and reduce particulate emissions by 35%, addressing a significant source of pollution. Tyre pollution, responsible for six million tons of particulate matter globally, contributes heavily to ocean microplastic and air pollution. ENSO’s commitment to phase out fossil fuel-based raw materials by 2030 in favour of bio-based alternatives underscores its environmental leadership.

The US market stands to gain significantly from this transformation, both economically and environmentally. ENSO’s factory marks a critical investment in the future of tyre manufacturing, setting new standards for sustainability and innovation in the industry.


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.”


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