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U Power Announces Market Validation Phase of Shared Battery Swapping Solution for Two- and Four-wheeled EVs

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U Power Limited (UCAR) announces the market validation phase of their shared battery swapping solution for EVs in China. Over 40 battery swapping stations set up in Shanxi catering to delivery services and food delivery industry. Plans to deploy over 200 stations in additional Chinese provinces. The technology accommodates both two- and lightweight four-wheeled EVs seamlessly. CEO expects a 30% reduction in battery operating expenses for delivery service providers.
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The introduction of U Power's shared battery swapping solution represents a significant step in addressing operational efficiency and cost reduction for delivery services within the EV ecosystem. By targeting a niche market of two- and lightweight four-wheeled EVs, the company is tapping into a growing segment that benefits from rapid battery swapping capabilities, especially pertinent in the high-demand delivery industry.

From a market perspective, U Power's strategy to pilot the system in Shanxi before a broader rollout is a calculated move to test market receptiveness and refine their service model. The potential expansion to additional provinces indicates a confident business model that, if successful, could disrupt traditional charging methods and create a new standard in EV power solutions. The proposed 30% reduction in battery operating expenses is a compelling value proposition that could incentivize adoption and increase market share for U Power.

The announcement of U Power's market validation phase for its battery swapping stations is a pivotal development that could have positive implications for their financial performance. The initial deployment of over 40 stations is a considerable investment and the success of this phase is critical for justifying the planned expansion to over 200 stations. The financial implications hinge on the adoption rate and the ability to scale efficiently.

Investors will be keenly observing the uptake of U Power's service and whether it aligns with the CEO's projections of reduced operating costs and long-term shareholder value. The 30% cost-saving claim is a strategic selling point that, if realized, could lead to increased demand and higher revenue streams. However, investors should also consider the capital expenditure required for such an expansion and the company's capacity to sustain it without compromising profitability.

U Power's shared battery swapping solution is a noteworthy innovation within the energy sector, particularly for its implications on the electric vehicle (EV) battery market. The technology's ability to standardize battery packs across different EV models could simplify the logistics and inventory management for battery production and recycling. This standardization might also pave the way for more universal battery solutions in the EV industry, potentially influencing future battery manufacturing and design standards.

Moreover, the environmental impact of such a system could be substantial. By optimizing battery usage and potentially extending the life cycle of batteries through efficient swapping, there may be a reduction in waste and an improvement in the sustainability profile of EVs. This aligns with global trends towards more sustainable energy solutions and could position U Power as a leader in eco-friendly EV technology.

SHANGHAI, Feb. 12, 2024 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a vehicle sourcing services provider with a vision to becoming a comprehensive EV battery power solution provider in China, today announced that their shared battery swapping solution designed for both two- and lightweight four-wheeled electric vehicles ("EVs") has entered the market validation phase. The first batch of over 40 battery swapping stations offering battery swapping services for both two- and lightweight four-wheeled EVs has been set up in Shanxi, China, catering specifically to the needs of delivery services and the food delivery industry.

Upon successful completion of the market validation phase, the Company aims to extend its service by gradually deploying over 200 of their specialized battery swapping stations in additional Chinese provinces, including Shandong, Anhui, and Shanxi. U Power's battery swapping technology seamlessly accommodates both two- and lightweight four-wheeled EVs by utilizing battery packs with identical specifications. This system allows different models of EVs to swap battery modules at the same station. For instance, two-wheeled EVs may use 2-4 sets of battery modules, while their lightweight four-wheeled counterparts may use 4-8 sets of battery modules. The procedure entails initiating the swap via cell phone verification at the battery station, followed by manual battery swapping.

Mr. Jia Li, Chief Executive Officer and Chairman of the Board, commented, "Our shared battery swapping solution is an exciting innovation for individuals employed in the delivery industry. We are confident that our solution will help delivery service providers lower their daily operating costs, while enhancing overall vehicle efficiency. When compared to the cost of purchasing and charging a battery, our leasing system is projected to reduce battery operating expenses by around 30%. Once our solution officially launches, we anticipate the creation of significant business opportunities that will generate long-term value for our shareholders."

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/.

Forward-Looking 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 statement and other filings with the SEC.

Contact

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

Cision View original content:https://www.prnewswire.com/news-releases/u-power-announces-market-validation-phase-of-shared-battery-swapping-solution-for-two--and-four-wheeled-evs-302059374.html

SOURCE U Power Limited

The ticker symbol for U Power Limited is UCAR.

The first batch of over 40 battery swapping stations are set up in Shanxi, China.

The shared battery swapping solution is targeting the delivery services and food delivery industry.

U Power Limited aims to deploy over 200 of their specialized battery swapping stations in additional Chinese provinces.

The CEO expects a reduction of around 30% in battery operating expenses for delivery service providers.
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