Dive Brief:
- London-based startup Enso has signed a letter of interest with the Export-Import Bank of the United States, the federal government’s credit agency, to establish a $500 million carbon-neutral tire factory in the U.S., according to a June 24 press release.
- The first phase of the facility’s development will produce 5 million electric vehicle tires by 2027 and create 600 jobs. The factory will later increase to 2,400 jobs when it reaches full capacity producing 20 million tires, according to the release.
- The facility will use carbon-neutral raw and building materials and 100% renewable energy to produce tires as part of Enso’s goal to reduce tire pollution and make EVs “more successful,” the company stated in the release.
Dive Insight:
Enso has been scouting for a potential site location throughout the U.S., including in Colorado, Nevada, Texas and Georgia. And with federal incentives such as the Inflation Reduction Act and mandated state policies like California’s Replacement Tire Efficiency Program, the U.S. is an ideal market for the UK-based startup, the company stated in the release.
Moreover, the high demand for quality tires and the rapid growth of EV projects also drove Enso’s decision to establish its first manufacturing facility in America, founder and CEO Gunnlaugur Erlendsson said in an email to Manufacturing Dive.
“Fundamentally, it's about speed and scale,” Erlendsson said. “In America, planning is quicker, energy costs are lower, and the venture capital environment has a keen appetite for projects like ours, delivering innovative and disruptive technologies at scale.”
To further its commitment to tire pollution reduction, Enso plans to integrate research and development at the site to advance and scale innovation. The startup also aims to phase out all fossil fuel-based raw materials from its tires by 2030 and replace them with bio-based renewable and low-carbon alternatives, the company stated.
Tire production starts by extracting petroleum, which is then processed into raw materials like synthetic rubber, polymers, carbon black and steel, according to a 2020 Environmental Protection Agency report.
Six million tons of tire particles are released into the environment annually worldwide, according to a 2023 Imperial College London report. If the microplastics are consumed by people through the air, water or food, it can heighten pre-existing conditions, such as asthma and chronic obstructive pulmonary disease.
Moreover, Enso is working with industrial manufacturer Rockwell Automation and global sustainability development firm Arup for the facility’s engineering and technology advancement.
Rockwell has been collaborating with other tire makers to enhance manufacturing efficiency. In February, the automation company announced a digitalization collaboration with Prometeon Tyre Group to improve operations and cut costs at the tire manufacturer’s facilities in Italy, Turkey, Egypt and Brazil.
