On January 30, British asset manager Schroders announced that its Greencoat unit has signed a memorandum of understanding with Chinese battery manufacturer CATL and Hong Kong–based private equity firm Lochpine Capital. The agreement commits the three parties to jointly explore the creation of an investment platform in Europe focused on battery energy storage systems.
The collaboration comes amid British Prime Minister Keir Starmer’s visit to Beijing, part of a broader effort by the UK government to deepen economic ties with China. Starmer’s approach follows in the footsteps of his predecessor, former Governor of the Bank of England Mark Carney, who also sought closer engagement with Chinese investors despite cautionary messages from US policymakers.
CATL, one of the world’s largest battery producers, has drawn attention in the United States over its partnerships with automakers. Earlier this week, a senior Republican lawmaker publicly questioned Ford’s collaboration with the Chinese company. Schroders declined to comment when approached for further details on any geopolitical or regulatory implications.
In addition to the Schroders–CATL initiative, other recent UK–China energy deals have been announced. On the same day, UK-based Octopus Energy revealed a joint venture with China’s PCG Power aimed at trading renewable energy across international markets.
The Schroders-Greencoat platform is expected to leverage each partner’s expertise—Greencoat’s track record in sustainable infrastructure investments, CATL’s battery technology leadership, and Lochpine’s project financing capabilities—to accelerate the deployment of large-scale energy storage solutions in Europe. Such systems are increasingly viewed as critical to integrating intermittent renewable power sources and supporting grid stability.
As Europe intensifies its transition to clean energy, this strategic partnership underscores the growing role of cross-border collaborations in advancing both technological innovation and the expansion of energy storage capacity.
Source: Reuters
