Nemanja Mika? for ''Blic Business''
Nemanja Mikac is the founder and CEO of ElevenEs, which is one of the first lithium-iron-phosphate battery factories in Europe. Nemanja Mika? revealed for "Blic Biznis" what role our country can play in the European e-mobility chain, whether we have the capacity to become a significant exporter of battery systems, as well as his predictions for the next period.
How did you decide to enter the world of lithium iron phosphate (LFP) batteries? How difficult was it to start such a business in Serbia?
The idea of starting a business came in 2019, when I bought an electric car. I realized that batteries were the future of the industry and I wanted to start my own battery company. I analyzed all aspects of the battery production process and noticed a lot of similarities with our multinational company "Al Pack" from Subotica, which specializes in aluminum processing, operates in the packaging market and makes a very large contribution to the energy transition.
"ElevenEs" started its work as a development project of "Al Pack" company and was started by only ten people that first year. It wasn't easy, but we didn't even start from the beginning because we had a model to emulate. And I am proud of the fact that "ElevenEs" and our business are continuously developing and that now over 110 Serbian and foreign experts are working on the project.
ElevenEs is the first lithium-iron-phosphate battery factory in Europe? What is its importance for Serbia?
The importance of "ElevenEs" is reflected in the fact that we managed to create our own technology for the production of lithium-iron-phosphate batteries, which are currently the most popular on the world market. Our plan is to localize and scale production in Serbia in the next seven to eight years. To slowly bring in our partners and to participate in the creation of the supply chain in Serbia. That would mean about three to five billion euros per year, for our supply chain alone, and about 5,000 new jobs in our company.
What role can our country play in the European e-mobility chain? Do we have the capacity to become a significant exporter of battery systems or key raw materials based on the signed Memorandum with the EU?
The Republic of Serbia could be a technological leader in LFP battery production in the whole world outside of China, because it has a chance to become the first in Europe to mass-produce this type of battery.
The signed Memorandum with the European Union envisages a serious focus on the ecosystem of electric vehicles and battery production. In this sense, the development plan of the "ElevenEs" company includes increasing the capacity for the production of batteries for commercial use. Our facilities already operate according to the world's highest environmental standards and are fully compliant with the European Union's green agenda and regulations.
Also, we are working hard to increase capacity and 2026 will be a crucial year for us in terms of business development. Then it is predicted that we will have products ready for sale. Our next step is a mega factory, which would be the first factory of this type in our region. We have bigger plans for later - three gigafactory, where the total capacity would be 49 GWh.
When talking about Serbian lithium, we often hear that it represents an opportunity to attract and develop other investments. How much could the development of the e-mobility chain affect the technological progress of Serbia and the development of knowledge and skills of employees?
Serbia has a chance to become the energy power of the world in a few years. If we were to form an entire production chain in Serbia, it would certainly open up space for numerous investments in our country. The economic and market potential of this type of business model and supply chain in Serbia is enormous. We could expect about 10-12 billion euros of new income for Serbia and about 20 thousand new jobs in our country, as well as a consequent serious growth and development of employees in the industry. Energy is a central theme that is both geopolitical and economic. Batteries enable energy storage and grid stabilization, which is key to reducing CO2 emissions and electrifying various industries. The key to decarbonisation is electrification.
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*What are your predictions for the e-mobility industry in the next 10 years? What roles will new technologies play in transforming the market and infrastructure for electric vehicles?
LFP batteries have been around for some 20 years in science, but engineering innovations have allowed them to be used in almost all applications today. They have primacy in the world industry because they last three times longer, are 10% cheaper and are safer than other types of batteries, for example than NMC (nickel-manganese-cobalt) batteries. Although LFP batteries have a lower energy density, engineers have found a way to use them in larger applications, such as cars, work machines, buses and trucks. It is also important to note that the demand for LFP batteries is much higher than the current production in Europe, even the planned production in the next 5 years may not meet the needs of European industries. New technologies will focus on further improvement of LFP batteries . Similar to how it was for diesel engines for decades. I don't expect a revolution in the next 10 years, but incremental improvements. We can expect a warranty on LFP batteries of 500,000 km in cars already in a few years.
Are there workforce challenges when talking about the green transition and your company specifically?
The green transition and the goals to which the countries of the European Union have committed themselves will certainly require the transformation of job descriptions, staff retraining and education within the employment market. "ElevenEs" is a multicultural environment and we are very proud of that. We employ over 110 experts from around 20 nationalities. It is very important for us to provide equal opportunities for interested candidates from Serbia and different parts of the world, which, at this moment, facilitates the processes and enables a sufficient number of employees. It is estimated that over 800,000 people will need to be retrained on the territory of Europe. In Serbia, we expect retraining for around 20,000 people.
The world is currently in a "trade war" in taxes around electric vehicles, what is your opinion, will this disrupt the market?
Car production has always been a geopolitical topic. As new supply chains are now being created and completely new industries are being born, it is strategically important for every country to have as much of that production as possible in its own country. We've seen America retaliate with subsidies for local production of batteries, critical raw materials and cars, as well as tariffs on Chinese car imports. Europe has been preparing something similar for a long time, but has never been able to make a decision. The trade war will most certainly continue and have many more chapters. Europe must urgently wake up and start investing in the technologies of the future, as well as subsidizing local production, at least until it is competitive on the market, similar to what America has already done.
There are also proponents of the idea that cars don't even need to use lithium ion batteries anymore, but switch to different alternatives, like hydrogen, what do you think about that, is it really a thing of the past?
Hydrogen as a fuel for cars is simply not an option. Certainly, green hydrogen is needed, but where it is needed, such as the fiber optic cable industry, space industries and the like. Hydrogen for the purpose of fuel cells has no energy and economic potential . It takes about 50kWh of electricity to produce 1kg of hydrogen. That same kilogram of hydrogen can deliver energy of about 20kWh. That is not sustainable efficiency. In addition, hydrogen storage is also a problem, it is extremely reactive. Then there is the transport of hydrogen, the availability of the pumping stations themselves, etc. Hydrogen will never live in cars and we should accept that fact as soon as possible. Lithium-ion batteries will be used for at least another 10, and most likely at least another 20 years.
You are participating in the Look UP - Green Transition conference, where you will discuss the development of the value chain in Serbia with international and domestic experts. What do you expect from the conference?
I expect an open and transparent dialogue of the panelists, an exchange of professional opinions and experiences. I also expect the education of the entire public about the ecological and economic potential of the Republic of Serbia.
Source (Serbian language): Blic Biznis
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