U Power and FTT Holding to Establish a Joint Venture to Accelerate Expansion in Southern Europe

Rhea-AI Summary

U Power (Nasdaq: UCAR) signed a Letter of Intent with FTT Holding to form a joint venture to accelerate U Power's expansion in Southern Europe. FTT Holding plans to commit up to $50 million to the JV. Separately, U Power entered a Share Subscription Agreement for a private placement of up to $10 million of Class A ordinary shares, to be issued at a significant premium to the current trading price and subject to a 39-month lock-up. The Agreement is expected to be finalized in January 2026 and remains subject to customary closing conditions. Additional JV and subscription details will be disclosed later.

Positive

• FTT commit up to $50 million to JV
• $10 million private placement at a premium
• 39-month lock-up may align long-term investor interests
• Targets expansion into smart EV charging and battery-swapping in Southern Europe

Negative

• Subscription and JV are subject to closing conditions
• Private placement will cause share dilution when issued
• 39-month lock-up limits secondary supply from new shares

Key Figures

Planned JV investment Up to $50 million FTT Holding commitment into Southern Europe joint venture

Private placement size Up to $10 million Class A ordinary share subscription by FTT Holding

Lock-up period 39 months Lock-up on privately placed Class A ordinary shares

Agreement finalization target January 2026 Expected closing timeline for Share Subscription Agreement

Market Reality Check

$1.75 Last Close

Volume Volume 8,622 is below the 20-day average of 21,051 (relative volume 0.41), indicating subdued trading ahead of this announcement. low

Technical Shares trade below the 200-day MA, with price at $1.751 versus MA $2.56, reflecting a weak longer-term trend before this JV news.

Peers on Argus 1 Down

Sector peers showed mixed, stock-specific moves, with AZI appearing on momentum scanners and down ~4.55% without news, while other peers moved in both directions. This suggests UCAR’s setup was company-specific rather than part of a broad sector trend.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Sales agreement	Positive	-3.3%	Initial Peru sales agreement for vehicles and swapping cabinets worth $113,000.
Dec 09	Business update	Positive	-3.3%	CEO letter highlighting 34.4% H1 revenue growth and global deployment progress.
Oct 21	European expansion	Positive	+9.4%	First European van and station sale in Italy for €540,000 with expansion option.
Oct 13	Earnings update	Positive	-3.0%	H1 2025 results with 34.4% revenue growth and sharply higher gross profit.
Sep 29	Web3 partnership	Positive	+4.1%	IoTeX partnership to tokenize battery-swapping assets and build Web3 infrastructure.

Pattern Detected

Positive operational or partnership news has often seen muted or negative next-day price reactions, with only select expansion deals generating upside.

Recent Company History

Over the last six months, U Power reported expanding its UOTTA battery-swapping deployments across multiple regions, including Europe and Latin America, alongside strong H1 2025 revenue and gross profit growth. Key milestones included a €540,000 van and station sale in Southern Europe and a Web3-focused partnership with IoTeX. Despite these commercial and financial advances, several announcements on Oct 13 and Dec 9 saw negative price reactions, highlighting a pattern where seemingly positive updates did not consistently translate into short-term gains.

Market Pulse Summary

This announcement outlines a planned Southern Europe joint venture backed by up to $50 million from FTT Holding and a separate private placement of up to $10 million in Class A shares at a premium, subject to closing in January 2026. It follows a series of partnerships and international deployments. Key factors to watch include definitive JV terms, timing of capital deployment, progress on smart charging and battery-swapping infrastructure, and how these initiatives feed into revenue growth and profitability.

Key Terms

letter of intent financial

"announced the signing of a Letter of Intent ("LOI") with FTT Holding"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

joint venture financial

"for the establishment of a strategic Joint Venture ("JV") aimed at"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

share subscription agreement financial

"In addition, U Power has entered into a Share Subscription Agreement"

A share subscription agreement is a written contract in which an investor agrees to buy a specific number of a company's shares at an agreed price and under stated conditions. It matters to investors because it spells out who pays what, when shares are issued, and any protections or obligations for both sides—like a detailed purchase order that clarifies ownership, timing and potential dilution risk so investors know exactly how their stake will be created and protected.

private placement financial

"via the private placement of up to $10 million Class A ordinary shares"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

AI-generated analysis. Not financial advice.

FTT Holding to Commit Up To $50 Million into the Joint Venture

SHANGHAI, Dec. 16, 2025 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of AI-powered solutions for next-generation energy grids and intelligent transportation systems and, building on its proprietary UOTTA^TM electric vehicle (EV) battery-swapping technology, today announced the signing of a Letter of Intent ("LOI") with FTT Holding Company LLC ("FTT Holding"), a US-based technology focused investment firm, for the establishment of a strategic Joint Venture ("JV") aimed at accelerating the Company's expansion in Southern Europe. 

Under the terms of the LOI, FTT Holding plans to invest up to $50 million into the JV, once established. This capital infusion is expected to support U Power's strategic growth initiatives including its business expansion in Southern Europe, establishment of smart EV charging, battery‑swapping and next‑generation energy infrastructures. 

In addition, U Power has entered into a Share Subscription Agreement (the "Agreement") with FTT Holding via the private placement of up to $10 million Class A ordinary shares, which will be issued at a significant premium to the current trading price and with a 39-month lock up period. The Agreement is anticipated to be finalized in January 2026, is subject to customary closing conditions.

Additional information about the JV and Agreement to be disclosed at a later date. 

Jonny Lee, CEO of U Power, commented, "This investment from FTT Holding, a strategic step within our joint venture framework, is designed to strengthen our partnership and enhance our combined capabilities. We anticipate this capital infusion to support the execution of key shared programs and enable us to effectively expand our footprint in Europe. Together, we aim to collaborate on innovation and advance strategic initiatives that align with our shared long-term vision. Looking ahead, the Company plans to evaluate additional opportunities to enhance shareholder value and build long-term returns for investors."

About FTT Holding
FTT Holding is a Miami-based technology investment firm focused on cryptocurrency, non-fungible tokens, and strategic investments. The firm explores partnerships, joint ventures, mergers and acquisitions driven by innovation and expertise. All information herein regarding FTT Holding has been reviewed and approved by FTT Holding.

About U Power Limited
U Power is a provider of comprehensive AI-integrated energy solutions that connect electric vehicles (EVs) with advanced energy infrastructure, optimizing both mobility and grid performance. Originally a distributor of various battery-swapping station models built on its proprietary modular battery-swapping technology UOTTA™, U Power has evolved into a provider of AI-integrated solutions for energy grids and transportation systems.

Through investments in next-generation technologies, U Power is building intelligent ecosystems that integrate resilient AI driven solutions able to transform EVs into dynamic energy assets. By incorporating AI algorithms, U Power's comprehensive solutions for smart energy grids are designed to support autonomous EV driving, optimize energy replenishment efficiency, and seamlessly connect EV assets with advanced AI-powered transportation systems, enabling peak and off-peak energy load balancing.

For more information, please visit the Company's website: https://www.upower-limited.com/.

Safe Harbor Statements
This press release contains "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 statements and other filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. References and links (including QR codes) to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

Contact
U Power Limited
Investor Relations Department
ir@upincar.com

The Equity Group
Lena Cati, Senior Vice President
212-836-9611 / lcati@theequitygroup.com 

Alice Zhang, Associate
212-836-9610 / azhang@theequitygroup.com  

View original content:https://www.prnewswire.com/news-releases/u-power-and-ftt-holding-to-establish-a-joint-venture-to-accelerate-expansion-in-southern-europe-302643047.html

SOURCE U Power Limited

FAQ

What did U Power (UCAR) announce on December 16, 2025 regarding a joint venture?

U Power signed an LOI with FTT Holding to form a JV to accelerate expansion in Southern Europe, with FTT planning to commit up to $50 million.

How much is FTT Holding committing to the UCAR joint venture and when will the share deal close?

FTT plans to invest up to $50 million into the JV; the related Share Subscription Agreement is anticipated to be finalized in January 2026, subject to closing conditions.

What are the terms of the UCAR private placement with FTT Holding?

Up to $10 million of Class A ordinary shares will be privately placed at a significant premium to the trading price and will carry a 39-month lock-up.

How will the U Power and FTT JV affect UCAR's business focus?

The JV funding is intended to support expansion of smart EV charging, battery-swapping, and next-generation energy infrastructure in Southern Europe.

Does the UCAR-FTT transaction have any risks investors should note?

Yes — the JV and share subscription are subject to customary closing conditions, and the placement will result in additional shares when issued.