We introduce here a new “neoclassical” electromagnetic (EM) theory in which elementary charges are represented by wave functions and individual EM fields to account for their EM interactions. We call so defined charges balanced or “b-charges”. We construct the EM theory of b-charges (BEM) based on a relativistic field Lagrangian and show that: (i) the elementary EM fields satisfy the Maxwell equations; (ii) the Newton equations with the Lorentz forces hold approximately when b-charges are well separated and move with non-relativistic velocities. When the BEM theory is applied to atomic scales it yields a hydrogen atom model with a frequency spectrum matching the Schrodinger model with desired accuracy. An important feature of the theory is a mechanism of elementary EM energy absorption established for retarded potentials.