Enso to build $500m EV tire plant in US

Washington DC – UK-based electric vehicle (EV) tire start-up Enso is planning to build a $500 million (€465 million) production plant in the US to support new-mobility growth in the country.

The company has signed a letter of intent with the Export-Import Bank of the US (US EXIM Bank) to establish the plant in an as-of-yet undecided location with an initial capacity to produce 5 million units of EV tires per year.

Enso is considering the US states of Colorado, Nevada, Texas, and Georgia for the location of the plant, which it said will be “America’s first carbon-neutral tire factory.” 

The first phase of the project will produce 5 million EV tires by 2027 and create 600 jobs, the company announced 24 June.

Future plans involve increasing workforce to 2,400 jobs and production capacity to 20 million tires a year – 8% of America’s total annual tire market.

The UK start-up has partnered with technology group Rockwell, sustainable design & development firm Arup and US-based investors 8090 Industries and Galway Sustainable Capital for the project.

The factory will be carbon-neutral without purchased offsets, utilising “carbon-neutral raw materials, building materials and 100% renewable energy,” Enso explained.

Furthermore, the campus will integrate research and development with production "to accelerate and scale innovation.”

Commenting on the investment decision, Enso said the US, particularly California, has a significant EV consumer base and “is leading efforts to regulate tire efficiency and emissions," making it "the ideal market."

The country presents “strong regulatory support and a significant market opportunity” for Enso’s “low-emission, low-cost tires,” said CEO Gunnlaugur Erlendsson.

“This factory will make tires more affordable, reduce tire pollution, create great jobs and drive sustainability in the US tire industry,” he added.

An important factor in deciding the US as the location, Enso said, was the country’s regulatory environment, including initiatives such as the Inflation Reduction Act.

Enso also noted that initiatives such as the California’s ‘replacement tire efficiency programme’ and efforts to control toxic chemicals such as 6PPD in tires ‘aligned’ with its environmental goals.

The new plant will mark Enso’s first own production facility.

The company is currently in a long-term partnership agreement with Sétif, Algeria-based tire maker Iris, for the manufacture of its EV tires. (ERJ report)