Caterpillar Invests in European LFP Battery Technology Leader

2026-02-24

Caterpillar Inc. is strengthening its commitment to energy transformation through a strategic investment in European battery technology. The company's venture capital subsidiary, Caterpillar Venture Capital Inc., led a Series B funding round for ElevenEs, a Serbia-headquartered lithium ferro-phosphate (LFP) battery technology company.

The investment will support the construction of a 1GWh "mega factory" in Subotica, Serbia, which broke ground in February 2026. The 25,000-square-meter facility will feature state-of-the-art automated production equipment and is expected to deliver its first battery cells in 2027, scaling ElevenEs' proprietary LFP blade prismatic cell technology . The project is expected to employ more than 350 people, significantly expanding the company's existing team of over 110 international experts.

The LFP cells are specifically designed to meet the rigorous performance demands of industrial vehicles and equipment used in mining, construction, rail, and marine segments, in addition to battery electric vehicles, buses, trucks, and battery energy storage systems . The collaboration with Caterpillar strengthens ElevenEs' mission to deliver robust, reliable battery solutions for customers worldwide while supporting Caterpillar's focus on sustainable energy solutions.

"This transaction represents a significant milestone in the future of European battery manufacturing," said Nemanja Mikać, Founder and CEO of ElevenEs. "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" .

For Caterpillar, this investment marks a continued push into the energy space, useful not only for electrifying its core offerings such as mining and construction equipment but also for strengthening its presence in the energy storage sector. The company has been actively expanding in this area, including a recent agreement to provide 2GW of fast-response natural gas generators augmented with battery storage for a data center project in West Virginia.

The factory will enable lower-carbon footprint manufacturing with a facility design optimized for reduced waste and increased supply chain circularity. While ElevenEs currently sources most materials from China, the company plans to localize production by 2030 at the latest.