EV Tires - An Untapped Opportunity
The INNOVATORS - a chat with ENSO Founder & CEO, Gunnlaugur Erlendsson
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“Tire-gate, unlike Diesel-gate, hasn’t happened because there are really no laws being broken when you make a bad tire”.
A chat with Gunnlaugur Erlendsson, Founder & CEO, ENSO, and CoMotion’s Dan Eppstein, Jake Laffoley, and Nick Perloff-Giles.
CoMotion: Gunnlaugur, just how does ENSO differ from the tire companies we've all grown up with?
Gunnlaugur Erlendsson: ENSO is a tire technology company that makes better tires for electric vehicles (EVs) to extend EV range and reduce tire pollution. The world needs EVs to be successful, as they help us to combat climate change and eliminate harmful tailpipe pollution. However, EVs, like all vehicles, still run on tires that wear down and release microscopic tire pollution that is harmful.
Globally, tires emit over six million tons of tire pollution each year. Tire pollution is a major source of microplastic pollution, is toxic to aquatic environments and generates invisible air pollution in cities.
The problem of tire pollution is compounded by EVs. They are heavier and have higher torque than internal combustion engine (ICE) vehicles. EVs are mostly driven in urban areas where tires wear faster due to the number of starts, stops and turns. We need to start making better tires for EVs, otherwise the current problem of tire pollution will only get worse.
ENSO is on a mission to make EVs more successful, by extending EV range and reducing tire pollution. We do that by making better tires that enhance EV energy-efficiency by up to 10%, and making them more durable, reducing tire particulate pollution by up to 35%.
We also sell our tires directly to our EV customers to make them more affordable. Ultimately this means that our customers save on their energy-bill and their tire bill, helping to make EVs cheaper to run and more commercially successful in the real world.
CoMotion: Who would be a typical client, and how does your USP relate to the current state of the industry?
Gunnlaugur Erlendsson: ENSO’s typical customer is a high-mileage EV fleet operator which is focused on saving costs every mile, but ultimately, we believe that every EV owner deserves better tires.
For example, our EV tires are already chosen by many drivers of London’s iconic black electric taxi, as they are more affordable to buy, use less energy per mile and last longer. They are also safer because the ENSOs perform better in wet conditions than the standard tires, which is also a key selling point due to the London weather.
Last-mile delivery companies are also a great example of typical ENSO clients. Electric delivery van fleets operate under high-intensity duty cycles, with high annual mileages, and so are highly incentivized to drive down their total cost of ownership (TCO). ENSO’s technology and business model is built to deliver substantial TCO savings, while improving their operations.
CoMotion: And what role do you see your company playing in the long term?
Gunnlaugur Erlendsson: ENSO wants to make EVs more successful, by constantly delivering better tire technology with improved material science, design and manufacturing. ENSO is also determined to lead the way on decarbonizing the tire industry and aims to remove all fossil-fuels from its products by 2030, which is two decades ahead of the mainstream tire industry.
The technology to make better tires exists today, but technology alone is not enough to deliver the impact at scale. We need to deliver our EV better tires in large volumes to truly have an impact, so ENSO recently announced it was building a carbon-neutral tire factory in the United States, to be operational by 2027.
“ENSO's first-of-its-kind tire factory is designed to be carbon-neutral, powered by clean energy and utilizing carbon-neutral raw materials.”
CoMotion: Tell us about the process of making sustainable tires - what does the factory look like? How is it different from a conventional tire factory?
Gunnlaugur Erlendsson: Making more sustainable tires involves improving not just the tire itself, but the entire production process, from raw materials to energy inputs. ENSO recently announced that it will build a first-of-its-kind first carbon neutral tire factory in the U.S., to deliver our more efficient, durable and affordable tires at scale. Unlike conventional tire factories, the ENSO tire technology campus will prioritize sustainability at every step, from production to end-of-life disposal. The factory is designed to be powered by clean, renewable energy and utilize carbon-neutral raw materials.
In its first phase, the factory will produce 5 million EV tires by 2027 and create 600 green-collar jobs, rising to 2,400 green jobs when at full production capacity of 20 million tires. This will represent over 6% of America’s total annual tire market. Uniquely, the ENSO technology campus integrates tire research and development under one roof alongside tire production, accelerating scale and innovation.
CoMotion: When will this factory be operational? What still needs to happen to make it a reality?
Gunnlaugur Erlendsson: The first phase of ENSO’s factory is set to be operational by 2027, and the company is currently in discussions with several States that have shown a keen interest in finding ENSO a home in America. We anticipate having the final site selected and permitted, with secured funding by the end of summer 2025.
CoMotion: Where is the hurdle when it comes to consumer sentiment around sustainable tires? Is it education, convincing them of the efficacy, something else?
Gunnlaugur Erlendsson: Awareness is a challenge. Most owners don’t realize the EV range they lose when they downgrade their tires, and how that increases energy costs and ends up costing them more overall. This is a bigger problem in the United States, where there is no energy-efficiency label on tires, so EV owners are not even able to make an informed choice to keep their vehicles at high efficiencies.
Cost is also a hurdle. Most consumers are already pressed in their finances and can't afford the “green premium” that a typical sustainable solution often requires. By delivering our tires directly to customers ENSO enables better tires to be more affordable, in effect delivering a “green discount” to our customers.
The environmental impact of tires is also generally unknown. In the United Kingdom we are already exposed to more air pollution from tires than tailpipes, and tires are one of the largest sources of microplastic pollution in our oceans. Despite this, consumers remain completely unaware of the significant environmental impact of tires. ENSO was recently nominated by Prince William for the Earthshot Prize, and that has played a major role in raising awareness of tire pollution.
Fundamentally, we just don’t talk about tires and one reason is that no laws are being broken. Tires are just black, round and have a hole in the middle. Tires are seen as boring, so consumers don’t even think about them but without tires the world would grind to a halt, so we better get busy at making them better.
CoMotion: Who in the OEM or manufacturing world seems most committed and engaged to finding solutions to our tire pollution problem?
Gunnlaugur Erlendsson: Certain OEMs clearly see the importance of integrating high-performance, low-emission tires as part of their product offering, but it must be said that many are still more focused on Nürburgring lap times than reducing tire pollution on the school-run.
Tire-gate, unlike Diesel-gate, hasn’t happened because there are really no laws being broken when you make a bad tire.
CoMotion: Who are some of your partners working on the project? Which agencies from the US government have you been working with to make this project happen?
Gunnlaugur Erlendsson: ENSO is working with several leading partners for its U.S.-based factory, including major financial institutions and tire industry stakeholders. This includes global sustainable development firm ARUP, and Rockwell on factory automation. U.S.-based VC investors 8090 Industries and Galway Sustainable Capital are also supporting ENSO.
The Export-Import Bank of the United States (EXIM) has signed a Letter of Interest (LOI) to support ENSO’s U.S. factory and we are also in discussions with other U.S. government agencies to ensure compliance and support for the factory and our wider sustainable initiatives.
CoMotion: There is a lot of interest in lowering tire pollution from the main tire manufacturers, what gives Enso the competitive edge, and how are you best suited to be serving your clients and the needs of people for lower emissions?
Gunnlaugur Erlendsson: Being the only tire company that is willing to talk about the impact of tires, while demonstrating how to make EVs more successful is of course a key differentiator for ENSO. We are also the only Certified B-Corporation in the tire industry, a strong recognition of our social and environmental performance, along with leading companies such as Allbirds and Patagonia.
Ultimately our competitive edge lies in our joint focus to drive innovation into the products, while working directly with our end-consumers, namely high-mileage EV operators that are looking to improve their operations while reducing their TCO. That is how we can combat climate change while simultaneously reducing tire pollution.
CoMotion: What about your experience as a CoMotion INNOVATOR jumps out at you, and what value has it brought to Enso Tires over the years?
As a U.K.-based technology company, being a CoMotion INNOVATOR and winning the CoMotion LA Los Angeles New Mobility Challenge in 2021 provided ENSO with incredibly valuable exposure to U.S. industry leaders, partners, and investors, who are now looking to support our journey.
California has over a third of all EVs in the U.S. while Los Angeles is obsessed with both cars and new technology. As such the exposure and the relationships, we have developed via our friends at CoMotion have been invaluable in our journey to enter the U.S. market.
CoMotion: What advice would you give to entrepreneurs looking to build and gain traction with their startups?
Gunnlaugur Erlendsson: Don't give up, keep going, and keep smiling. Stay committed to your vision and mission, especially, and realize people will support you, especially if it addresses a significant environmental or social issue.
Building a strong network of partners and advisors is key. Be transparent to everyone about your progress and challenges. Focus on delivering tangible results in the shortest timeframes and continuously improve your product or service based on customer feedback and real-world performance.
“Whatever you do, keep talking about tires… so we need to make sure they are not forgotten as we transition to cleaner mobility.”
CoMotion: What else would you like to share with our audience, and where can they find out a bit more about Enso Tires?
Whatever you do, keep talking about tires. The entire world runs on tires and that is not going to change anytime soon, so we need to make sure they are not forgotten as we transition to cleaner mobility.
ENSO is launching in the U.S. later this year and we are keen to work with leading EV fleets and other high-mileage drivers who want to save costs every mile, so let us know if you want them on your EV fleet. We are also interested in partners that can support ENSO’s carbon-neutral tire factory.
If you are interested in joining our journey, feel free to reach out to the ENSO at team@ensotyres.com, and let’s work together to make EVs more successful.
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