ENSO to Build $500M Tyre Factory

ENSO, which is part of the Deepbridge Technology Growth EIS portfolio, has recently signed a Letter of Interest (LOI) with the Export-Import Bank of the United States (U.S. EXIM Bank) to build America’s first carbon-neutral tyre factory.

This project is supported by U.S.-based technology partners Rockwell, sustainable development firm Arup, and investors 8090 Industries and Galway Sustainable Capital. The factory will use carbon-neutral materials, sustainable building materials, and 100% renewable energy. Starting in 2027, it will produce 5 million EV tyres each year and create 600 jobs, eventually growing to make 20 million tyres and 2,400 jobs.

Announced at the SelectUSA Investment Summit in Washington DC, potential locations for the factory include Colorado, Nevada, Texas, and Georgia. The U.S., especially California, is a great market for ENSO due to its large number of EV users and strong rules on tyre efficiency and emissions. U.S. regulations, like the Inflation Reduction Act and EPA emissions standards, support ENSO's plans. ENSO CEO Gunnlaugur Erlendsson said, “The U.S. is the best place for ENSO to establish its first carbon-neutral tyre factory. With strong regulatory support and a significant market opportunity, we are committed to bringing our innovative, low-emission, low-cost tyres to American consumers. This factory will make tyres more affordable, reduce tyre pollution, create great jobs, and drive sustainability in the U.S. tyre industry.”

Tyre pollution is a big environmental problem, adding six million tonnes of particulate matter globally each year. ENSO’s tyres, which increase EV range by 10% and reduce particulate emissions by 35%, aim to tackle this issue. ENSO also plans to stop using fossil fuel-based materials by 2030, switching to bio-based renewable alternatives. This factory will be a big investment in the future of American tyre manufacturing, making environmentally friendly tyres locally, reducing the need for imports, and boosting the U.S. economy. ENSO’s goal to make EVs more successful and cut tyre pollution fits well with wider efforts to promote sustainability and economic growth.