The partners will establish a joint venture that will operate a recycling plant in Chile using Enviro's technology that can recycle 30,000 tonness of end-of-life construction equipment tyres annually.
Enviro will hold a 10% stake in the joint venture while Michelin will own 90%.
A license agreement, which extends through to 2035, allows Michelin to establish its own recycling plants based on Enviro's technology. Under the terms, Michelin will pay Enviro a fixed amount per plant and pay royalties.
Finally, the two have agreed to regulate conditions and the payment to Enviro for design, engineering and project services for the Chile facility.
The agreements must still be approved at Enviro's AGM. A letter of intent for the plan was first signed last April.
"Through the partnership with Michelin, we will achieve our first full-scale recycling plant, which is decisive for our ability to scale up and commercialise our technology," Enviro chairman Alf Blomqvist said.
"The partnership with a leading tyre manufacturer also gives us unsurpassed opportunities to improve our recovered carbon black and pyrolysis oil, which will naturally further strengthen our position in the market."