In a significant move for the green energy sector, leading British asset management firm Schroders has signed a strategic partnership with Contemporary Amperex Technology (CATL), a Chinese battery manufacturing giant. The deal was formalised on Friday 30 January 2026, during chief executive Richard Oldfield's participation in Prime Minister Keir Starmer's business delegation to China.
Strategic Partnership for European Energy Transition
The agreement, witnessed by Economic Secretary to the Treasury Lucy Rigby, brings together Schroders Greencoat - the firm's renewable energy infrastructure investment arm - with CATL and Hong Kong-based private equity firm Lochpine Capital. This collaboration aims to leverage the combined expertise of all parties in green infrastructure and advanced technology to accelerate the development of renewable energy storage capabilities across Europe.
Investment Platform Development
Under the terms of the partnership, the companies will collaborate to establish an investment platform specifically focused on European battery energy storage systems. CATL will serve as the primary battery supplier for these projects, bringing their world-leading battery technology to the European market.
Schroders Greencoat, which the asset management firm acquired a majority stake in during 2022 for approximately £358 million, will also support CATL's international expansion strategy. This support follows CATL's successful public listing on the Hong Kong stock exchange in 2025, where the company listed with a valuation of HK$35.7 billion (£3.3 billion). Since listing, CATL's share price has increased by 60.3 percent, currently trading at HK$491.
UK-China Business Relations Strengthened
The deal represents a significant development in UK-China business relations, occurring during Prime Minister Starmer's official visit to China aimed at forging closer trade and investment links between the two nations. Richard Oldfield described it as "an honour" to accompany the government delegation, noting that China has held "great strategic importance" for Schroders for over three decades.
Richard Nourse, Chair of Infrastructure at Schroders Capital, emphasised the importance of the partnership, stating: "Accelerating Europe's energy transition requires the deployment of significant amounts of capital. We look forward to working with Lochpine to provide investors with innovative ways to broaden access and investment into battery energy storage and other energy transition related infrastructure."
Market Response and Broader Context
Following the announcement, Schroders' share price experienced a modest increase of 0.22 percent on Friday, reaching 449.2 pence. The company's shares have shown strong performance throughout the year, rising 9.9 percent year-to-date.
James Wang, chief investment officer at CATL, highlighted the broader significance of the agreement, noting that it strengthens "cooperation between China and Europe" in the critical green technology sector.
This development follows another significant UK-China business agreement, where FTSE 100 pharmaceutical giant AstraZeneca entered into a deal worth up to $4.7 billion with leading Chinese drug maker CSPC Pharmaceutical Group. That agreement involved an upfront payment of $1.2 billion with potential additional payments of $3.5 billion to access experimental drugs for obesity and weight-related conditions. Following that announcement, AstraZeneca's share price rose 0.76 percent to 13,562 pence.
The Schroders-CATL partnership represents a substantial commitment to advancing Europe's renewable energy infrastructure while strengthening international business relationships in the increasingly important green technology sector.
