Enso plans to build EV-specific U.S. tire plant

WASHINGTON, D.C.—Enso Tyres Ltd., an British engineering startup focused on ultra-low-rolling-resistance tire development, plans to build what it is calling the world's first carbon-neutral manufacturing plant for electric vehicle (EV) tires in the U.S.

Enso said it is considering several locations for the $500 million facility, including Colorado, Texas and Georgia, as well as other states. Production of up to 5 million passenger tires a year designed for EVs is expected to start by 2027.

Enso announced the project June 24 at the SelectUSA Investment Summit in Washington D.C.

Enso officials said the U.S. is an "ideal market" for the facility, with a "significant" amount of EV customers, especially in California, which is "leading efforts to regulate tire efficiency and emissions."

The facility will include a research and development department in order to "accelerate and scale innovations," according to the company.

Enso said it has signed an letter of interest with the Export-Import Bank of the U.S. to fund the facility, with support from investors 8090 Industries and Galway Sustainable Capital Inc. Enso said it also is partnering with U.S. companies Rockwell Automation and Arup Group Ltd., an energy consulting firm.

Enso, founded in 2016 by Icelandic entrepreneur Gunnlaugur Erlendsson, said it will use carbon-neutral raw materials, building materials and 100 percent renewable energy. The factory will create 600 jobs, it said, with that total jumping to 2,400 when full capacity of 20 million tires—8 percent of the U.S. tire market—is reached.

"With strong regulatory support and a significant market opportunity, we are committed to bringing our innovative, low-emission, low-cost tires to American consumers," Erlendsson said. "This factory will make tires more affordable, reduce tire pollution, create great jobs and drive sustainability in the U.S. tire industry."

Enso noted that U.S. regulations and initiatives support the move, including "ambitious" emissions standards set forth by the Environmental Protection Agency (EPA).

In March, the EPA announced a mandate that will require two-thirds of all new cars and trucks sold in the U.S. to be electric in eight years. In addition, the EPA has mandated that by 2032, auto makers must reduce greenhouse gas emissions from light-duty vehicles by almost 50 percent and medium-duty vehicles by 44 percent compared with 2026.

Enso also pointed to programs such as the California Energy Commission's (CEC) Replacement Tire Efficiency Program and the California Environmental Protection Agency's (CalEPA) efforts to control chemicals such as 6ppd in tires as initiatives that align with ENSO's goals and environmental standards.

The company currently contracts production of its tires to Iris Tyres, an Algeria tire maker.

Enso hinted at the new factory at the COP28 climate conference in Dubai in December 2023, when it disclosed a plan to move production of its thus-far low-volume output to a "brand-new, carbon-neutral factory."

The time is now, according to the company, citing the fact that the majority of tires sold in the U.S. are imported.

Enso said its tires will reduce tire pollution as well as perform longer on EVs. The company claims—without published third-party data—that its tires will increase EV range by 10 percent and reduce particulate matter emissions by 35 percent.

Enso, a finalist in the "Clean Our Air" category of The Earthshot Prize, an annual environmental award, said it is committed to phasing out all fossil fuel-based raw materials from its products by 2030, replacing them with bio-based renewable and low-carbon alternatives.

This marks the second company in the past 13 months to announce plans to build a tire plant in the U.S.

In May 2023, Seoul, South Korea-based Nexen Tire Corp. announced it was planning to build a plant in the U.S., its first in North America. It has as yet not commented publicly on how far along those plans are.

The last new tire plant to open in the U.S. was Nokian Tyres Ltd.'s plant in Dayton Tenn., which opened in fall 2019. Giti Tire USA Inc. began production at its U.S. plant in Richburg, S.C., in October 2017.

There are 22 tire plants in the U.S. with passenger tire capacity, operated by 13 companies, according to Rubber News' Global Tire Report (GTR).

In total, there are 46 factories in the U.S. with pneumatic tire manufacturing capacity, GTR data show. South Carolina is No. 1 in terms of capacity and employment, 122,225 units per day capacity at eight plants, with 10,098 employees.

Oklahoma is No. 2 at 88,000 units per day at two plants, with 4,478 employees.