INTERVIEW - ElevenEs finalising plans for 1 GWh battery plant in Serbia

Serbian battery developer ElevenEs is finalising a project for the construction of a mega factory that will produce Lithium Iron Phosphate (LFP) batteries in the country’s northern city of Subotica, CEO Nemanja Mikac told SeeNews.

“The ElevenEs team is already working on increasing the production capacity and 2026 will be crucial for the company’s development. Our mega factory in Subotica will represent a significant step for the growth of our business, as well as the Serbian battery industry,” Mikac told SeeNews in an emailed interview on Monday.

Mikac declined to comment on the financial aspects of the project pending official data but noted the value of the investment is significant.

ElevenEs opened the first European R&D LFP centre in Subotica in 2021 and developed the first LFP battery produced in Europe in 2023. It aims to achieve an annual energy storage capacity of 1GWh at the planned Subotica mega plant. Following the investment in the mega factory, ElevenEs also plans to build a gigafactory, Mikac stated.

“The gigafactory is the next step after the mega factory in ElevenEs’ growth and development strategy. The capacity of the gigafactory would be 8 GWh. It will represent a significantly larger production facility [ …] and will enable us to reach production capacities that will be competitive on a global level,” Mikac said. Compared to other types of batteries, LFP batteries have a longer lifespan, are 10% cheaper and are also safer, according to Mikac.

In July last year, ElevenEs was among the signatories of a letter of intent on developing an e-mobility value chain in Serbia. Other signatories of the letter, which was inked after Serbia’s government reinstated permits for Rio Tinto’s planned 2.55 billion euro ($2.63 billion) lithium-borate mine in the country, included Serbia’s economy ministry, the European Bank for Reconstruction and Development, German development bank KfW, Italian development bank Cassa Depositi e Prestiti, Mercedes-Benz, Rio Tinto, venture capital firm EIT InnoEnergy, and Slovakia’s battery developer InoBat.

Asked about ElevenEs’ role in this initiative, Mikac said: “Our role is to provide reliable and quality LFP batteries that will be a key component of electric vehicles and energy storage systems. We believe that Serbia has the potential to become a regional centre for e-mobility, and we want to contribute to that initiative.”

Mikac also noted that the potential opening of the lithium mine in Serbia would provide his company with a more secure supply of raw materials and reduce its dependence on imports if it turns out that the exploitation of lithium is sustainable and environmentally acceptable. “ElevenEs has a strategy to diversify its sources of supply and we import finished raw materials mostly from China,” he added.

Speaking about competition from China, which dominates global LFP battery supply, Mikac stated ElevenEs can offer faster delivery, better support and flexibility to European clients.

Asked about ElevenEs’ regional expansion plans, Mikac said: “Expansion in the region is part of our long-term strategy. We believe there is great potential for the development of the battery industry in the region and we want to be a part of that growth. In the future, we plan to expand our production capacities and establish cooperation with partners in the region. However, our primary focus is currently on developing our capacities in Serbia and consolidating our position in the European market.”

($ = 0.969 euro)

Source: seenews