Power Giants Forge Alliance: Schroders, CATL, and Lochpine Unite to Fuel Europe's Battery Storage Surge

In a move set to accelerate Europe's energy independence and decarbonization goals, Schroders Greencoat, the renewable infrastructure arm of Schroders Capital, has forged a strategic partnership with Chinese battery manufacturing titan Contemporary Amperex Technology Co., Limited (CATL) and specialist investment firm Lochpine Capital. The memorandum of understanding (MoU), signed in Beijing, paves the way for a dedicated investment platform targeting large-scale Battery Energy Storage System (BESS) projects across the European continent.

The alliance, witnessed by UK Economic Secretary to the Treasury Lucy Rigby during a UK business delegation visit led by Prime Minister Keir Starmer, strategically combines capital, cutting-edge technology, and project development expertise. CATL will serve as the primary battery supplier, leveraging its industry-leading technology, while Schroders Greencoat and Lochpine Capital will drive investment and development. The collaboration targets an ambitious pipeline of projects with a total capacity of up to ten gigawatt-hours, enough to power millions of homes during peak demand periods and stabilize grids increasingly reliant on intermittent renewable sources like wind and solar.

"Accelerating Europe's energy transition requires the deployment of significant amounts of capital and reliable technology," said Richard Nourse, Chair of Schroders Capital Infrastructure. "This partnership allows us to offer investors innovative access to the critical infrastructure that will underpin a net-zero future, from battery storage to broader transition assets."

The deal underscores Schroders' deepening commitment to the Chinese market after over 30 years of operation there and aligns with CATL's aggressive global expansion strategy. For Europe, the influx of capital and technology comes at a pivotal time as nations scramble to bolster energy security and meet binding climate targets.

Industry Voices:

"This is exactly the type of cross-border, public-private collaboration we need," said Eleanor Vance, a clean energy analyst at the Brussels-based think tank Gridwise Europe. "It signals strong investor confidence in the long-term economics of storage and will help bridge the capacity gap much faster than individual national efforts."

"While the capital is welcome, we must scrutinize the supply chain dependencies this creates," commented Markus Thiel, a project finance director in Frankfurt. "Europe's strategic autonomy hinges on developing its own battery innovation and manufacturing base, not just importing finished units."

"A UK-backed deal funneling billions into Chinese battery dominance while our own factories struggle? It's shortsighted and undermines our energy sovereignty," argued Dr. Fiona Clarke, an outspoken energy policy critic and academic. "We're trading one dependency for another and calling it 'green progress.'"

The partnership leverages Schroders Greencoat's global portfolio of over 450 renewable assets and Lochpine's focused strategy on CATL-powered BESS solutions. Its success could serve as a blueprint for future large-scale infrastructure financing needed to achieve Europe's net-zero ambitions.

This report is based on information initially published by Power Technology.