Caterpillar Backs Serbian LFP Battery Plant in European Power Play

SUBOTICA, Serbia – February 24, 2026 – In a landmark move signaling a new era for European industrial electrification, battery technology company ElevenEs has secured a major Series B investment led by Caterpillar Venture Capital Inc. The funding will catalyze the construction of Europe's first dedicated Lithium Iron Phosphate (LFP) battery Mega-Factory in Subotica, Serbia, a project poised to reshape the continent's supply chain for heavy-duty applications.

The investment, which also saw participation from Hong Kong-based commodity trading house BST (HK) Ltd., provides the capital for the initial 1 GWh phase of the factory. Construction is set to begin this month, with the first advanced LFP battery cells scheduled for delivery in 2027. This development is not merely a corporate milestone; it represents a critical step in Europe's quest for energy independence and a direct challenge to the dominance of Asian manufacturers in the battery market, particularly for the demanding needs of industrial machinery.

Caterpillar's Strategic Electrification Push

Caterpillar's investment is far more than a passive financial stake; it is a clear indicator of the company's strategic direction. As the world’s leading manufacturer of construction and mining equipment, Caterpillar is navigating a profound industry shift driven by stringent emissions regulations and customer demand for sustainable, cost-effective solutions. This move into LFP technology through ElevenEs is a calculated bet on the future of heavy machinery.

LFP chemistry is uniquely suited for the brutal operating conditions of mining, construction, rail, and marine environments. Unlike nickel-based chemistries common in high-performance consumer EVs, LFP batteries are cobalt and nickel-free, which not only circumvents ethically fraught supply chains and price volatility but also offers superior thermal stability and safety. Their renowned longevity, with a cycle life that can be three times longer than other technologies, makes them ideal for equipment that runs for thousands of hours under extreme stress. This investment follows a pattern of strategic acquisitions and partnerships by Caterpillar, including its backing of U.S.-based battery pack specialist Lithos Energy, demonstrating a concerted effort to build a robust ecosystem for its next generation of electric and hybrid machines, such as its prototype 793 electric mining truck.

The Rise of LFP and Europe's Battery Ambitions

The global battery market is undergoing a significant pivot towards LFP technology. Valued at nearly $19 billion in 2024, the LFP market is projected to surge to over $90 billion by 2034, fueled by its adoption in electric vehicles, grid-scale energy storage, and industrial applications. ElevenEs aims to capture a significant share of this growth with its proprietary 'LFP Edge' technology.

The Serbian company has developed a high-performance blade-style prismatic cell that it claims pushes the boundaries of LFP performance. With a reported energy density of approximately 190 Wh/kg at the cell level and a unique design that enhances pack-level density, the technology promises efficiency. More impressively, ElevenEs touts a rapid charging capability—from 10% to 80% in as little as 12 minutes under optimal conditions—and a durability designed to last over 500,000 kilometers of vehicle use. These specifications are critical for industrial users who cannot afford extended downtime.

This initiative places ElevenEs squarely in the middle of Europe's burgeoning 'gigafactory race.' The continent is aggressively working to build a domestic battery supply chain to reduce its reliance on imports. ElevenEs will be competing and collaborating in a landscape that includes giants like CATL's new plants in Germany and Hungary, Sweden's Northvolt, and France's Verkor. However, by specializing in LFP for industrial use, ElevenEs is carving out a strategic and potentially lucrative niche.

A High-Tech Hub in the Balkans

The decision to build the Mega-Factory in Subotica is transformative for Serbia, positioning the nation as an emerging hub for high-tech manufacturing in Southeast Europe. The initial phase of the project will create a state-of-the-art, 25,000-square-meter production facility and generate over 350 skilled jobs, more than tripling the company's current workforce.

This is just the beginning. ElevenEs has laid out an ambitious roadmap to scale production to 8 GWh and ultimately to 48 GWh by the early 2030s, which could employ over a thousand people and supply batteries for a million mid-sized EVs annually, in addition to its industrial targets. The project has received strong backing from both the Serbian government and the European Union, which recognize it as a key project aligned with the European Green Deal. This government support, combined with Serbia's strategic location—notably near the Jadar valley, Europe's largest known lithium deposit—creates a powerful foundation for building a localized, sustainable, and circular battery ecosystem.

“In a crucial moment for the European battery industry, the investment from Caterpillar will support ElevenEs in its steps to advance LFP technology, expand global presence, scale operations to a 1GWh production facility, and position its European market leadership,” said Nemanja Mikać, Founder and CEO of ElevenEs. “We look forward to developing advanced LFP solutions for various industrial applications, continue innovating on battery energy storage systems and support Caterpillar’s focus on energy solutions.”

This new factory is more than just a building; it represents the creation of a high-tech ecosystem that will attract further investment, foster innovation, and provide a new industrial identity for the region. The convergence of advanced battery technology, strategic foreign investment, and local ambition marks a significant step in the economic development of the Balkans and the technological sovereignty of Europe as a whole.