Strategic Partnership Aims to Revolutionize South American Ride-Hailing

SHANGHAI, Oct. 21, 2024 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) ("U Power" or "the Company"), a vehicle sourcing services provider with a vision to becoming a comprehensive electric EV battery power solution provider in China, today announced the signing of a Memorandum of Understanding with Ualabee Corp., a leading South American mobile travel platform. The strategic partnership aims to integrate U Power's proprietary UOTTA battery-swapping technology into Ualabee's ride-hailing services across South America, marking a significant step in the Company's global expansion strategy.

Ualabee, a leading South American mobility platform, revolutionizes urban transportation through its comprehensive app-based services. Offering a seamless blend of ride-hailing, taxi, and shared mototaxi options, Ualabee has established itself as a pioneer in the region's evolving transportation landscape. With a strong focus on technological innovation, Ualabee not only connects passengers and drivers efficiently but also drives the industry towards greater sustainability. Ualabee's commitment to enhancing user experience while promoting eco-friendly transportation solutions positions it as an ideal partner for U Power's expansion into the South American market. The collaboration comes as the South American ride-hailing market, which is expected to exceed $1.5 billion in size, begins a major transition towards electric vehicles. Over the next three years, it is anticipated that approximately 80,000-100,000 fuel-powered ride-hailing vehicles will be replaced by EVs, including 20,000 in the Peruvian market alone.

The strategic partnership is set to revolutionize South America's ride-hailing industry by integrating U Power's innovative UOTTA battery-swapping system and compatible EVs into Ualabee's operations. This comprehensive collaboration goes beyond technology provision, encompassing the deployment of battery-swapping infrastructure, implementation of digital payment systems, and utilization of data analytics to optimize operations. The partnership will unfold in phases, starting with the introduction of UOTTA technology and EVs in key markets, and potentially progressing to local manufacturing of battery-swapping commercial vehicles. In the first quarter of 2025, U Power will introduce its first UOTTA battery-swapping station in Peru, which will have the capacity to serve 100 vehicles equipped with swappable batteries. Throughout 2025, the Company will build an additional 6-8 battery-swapping stations in Peru, bringing the total capacity to 800-1,000 vehicles. Meanwhile, for each of the next five years, Ualabee intends to replace 5,000 of its fuel-powered vehicles with electric vehicles, with an estimated 30% of these adopting the UOTTA battery swapping model. This phased approach underscores both companies' long-term commitment to sustainable transportation in South America, promising enhanced efficiency and environmental benefits for the region's urban mobility sector.

"Our UOTTA battery swapping ecosystem integrates vehicles, swapping stations, and spare batteries into one platform, offering flexible solutions for diverse market needs," said Jia Li, Chairman and CEO of U Power. "This collaboration with Ualabee in South America validates the global scalability of our technology and business model. It not only opens new revenue streams in a high-growth market but also aligns with our mission to accelerate sustainable mobility worldwide."

"The partnership leverages our mature technology and Ualabee's strong market presence to create powerful synergies. Our 'Battery Bank' financial model addresses key concerns about EV adoption, reducing both procurement and operating costs. This open ecosystem approach has already attracted interest from various stakeholders across the EV value chain."

"As we expand into South America, we're demonstrating the adaptability of our solution to diverse global contexts. This success will undoubtedly strengthen our position in the global EV revolution and pave the way for similar collaborations in other emerging markets, ultimately delivering greater value to our shareholders and partners."

About U Power Limited

U Power Limited is a vehicle sourcing services provider, with a vision to becoming an EV market player primarily focused on its proprietary battery-swapping technology, or UOTTA technology, which is an intelligent modular battery-swapping technology designed to provide a comprehensive battery power solution for EVs. Since its operation in 2013, the Company has established a vehicle sourcing network in China's lower-tier cities. The Company has developed two types of battery-swapping stations for compatible EVs and is operating one manufacturing factory in Zibo City, Shandong Province, China. For more information, please visit the Company's website: http://ir.upincar.com/.

Safe Harbor Statements 

This press release may contain "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

Contacts
U Power Limited
Investor Relations Department
Email: ir@upincar.com

Robin Yang, Partner
ICR, LLC
Email: UPower.IR@icrinc.com
Phone: +1 (212) 475-0415

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SOURCE U Power Limited

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