U Power's Strategic Partner UNEX EV Signs LOI with Didi Mobility to Deploy UOTTA(TM) Battery-Swapping Vehicles in Mexico

Rhea-AI Summary

U Power (NASDAQ:UCAR) announced that its strategic partner UNEX EV has signed a Letter of Intent with Didi Mobility to deploy UOTTA™ battery-swapping vehicles in Mexico's ride-hailing and car rental markets.

The partnership aims to promote UNEX EV's UOTTA™ battery-swapping vehicles to Didi's fleet drivers in Mexico, including vehicle sales, spare parts, and maintenance services. The Mexico ride-hailing market reached $2.2 billion in 2024 and is projected to grow at a 13.2% CAGR to reach $7.5 billion by 2033.

The initiative aligns with Mexico's green transportation goals, where EVs are expected to represent 30-40% of new ride-hailing vehicle purchases by 2027. The collaboration includes battery recycling initiatives and potential expansion into additional markets.

Positive

• Strategic entry into Mexico's $2.2 billion ride-hailing market with projected 13.2% CAGR
• Partnership with major mobility platform Didi enhances market penetration potential
• Alignment with Mexico's government-backed EV initiatives provides regulatory support
• Expansion opportunity in Latin America following established presence in Peru

Negative

• Agreement is currently only a Letter of Intent, pending definitive agreement
• Implementation timeline and specific deployment targets not disclosed
• Financial terms and revenue impact not specified

Insights

EV Industry Specialist

U Power's partner UNEX EV signs LOI with Didi to deploy battery-swapping EVs in Mexico, targeting a growing ride-hailing market projected to reach $7.5B by 2033.

U Power's strategic partner UNEX EV has signed a Letter of Intent with Didi Mobility to introduce UOTTA™ battery-swapping vehicles to Mexico's ride-hailing and car rental markets. This represents a significant market expansion opportunity for U Power's proprietary battery-swapping technology into Latin America's rapidly evolving electric mobility sector.

The partnership strategically targets Mexico's transportation electrification efforts where the government is actively supporting EV adoption. With transport accounting for 25% of national greenhouse gas emissions, the country has clear incentives to transition to cleaner mobility solutions. The collaboration positions U Power's technology to address real infrastructure challenges in an emerging EV market.

What makes this development particularly noteworthy is the access to Didi's extensive driver network. Didi's platform provides an immediate distribution channel for UOTTA™-equipped vehicles, potentially accelerating adoption rates beyond what would be possible through traditional consumer channels. The Mexico ride-hailing market is projected to grow at a CAGR of 13.2%, reaching $7.5 billion by 2033, providing substantial growth runway.

The battery-swapping model addresses critical barriers to EV adoption in emerging markets – namely range anxiety, charging infrastructure limitations, and upfront costs. By enabling quick battery exchanges rather than lengthy charging sessions, the technology aligns perfectly with the operational needs of high-utilization ride-hailing vehicles that cannot afford extended downtime.

However, it's important to recognize this announcement involves just a Letter of Intent rather than a definitive agreement, representing preliminary commitment that still requires translation into binding contracts and operational implementation. The success of this initiative will ultimately depend on execution, regulatory support, and market receptiveness to battery-swapping as an alternative to traditional charging infrastructure.

Accelerating the Green Transformation of Mexico's Transportation Industry

SHANGHAI, Aug. 11, 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, building on its proprietary UOTTA^TM electric vehicle (EV) battery-swapping technology, today announced that its strategic energy and technology partner, UNEX EV B.V. ("UNEX EV"), has signed a Letter of Intent (the "LOI") with DiDi Mobility Information Technology, Pte. Ltd. ("Didi Mobility"), a subsidiary of the leading mobility technology platform Didi Global Inc (OTC: DIDIY), to deploy UOTTA^TM battery-swapping vehicles for ride-hailing and car rental services in Mexico.

This LOI aims to promote the sales of UNEX EV's UOTTA^TM battery-swapping vehicles to drivers registered on Didi Mobility's fleet platform in Mexico. It also covers the sale of spare parts and the provision of maintenance services, with the goal of accelerating the green transformation of Mexico's transportation industry, enhancing energy efficiency and supporting the environmental protection initiative.

Specifically, upon the entering of a definitive agreement, UNEX EV will recommend and provide battery-swapping vehicle models suitable for Mexico market and establish a stable supply chain to ensure the delivery of these vehicles, spare parts and related services. Both parties will initiate collaboration on the cascade utilization and recycling of batteries, aiming to extend battery life through continuous technology innovation. Didi Mobility will support market expansion by encouraging drivers registered on its fleet platform to transition to new energy vehicles by raising awareness among ride-hailing drivers and car-rental customers. Both parties have agreed to deepen their collaboration and explore innovative models to expand this partnership into additional markets.

Mexico transportation landscape and EV market opportunities
Mexico is actively reshaping its transportation landscape through electrification, integrated planning, and sustainable financing, setting a strong example in Latin America's fight against climate change. With transport accounting for nearly 25% of national greenhouse gas emissions and over 90% of road transport emissions, the shift to electric mobility is supported by government-backed initiatives, such as the electrification of Mexico City's Metrobus and the rollout of low-cost EVs priced as low as $4,400.

Additionally, Mexico represents one of the most dynamic and high-potential ride-hailing markets in Latin America. According to the IMARC Group, the Mexico ride-hailing market reached $2.2 billion in 2024 and is projected to grow at a CAGR of 13.2%, reaching a $7.5 billion in 2033. This momentum is being driven by a young, mobile-first population and an increasing demand for flexible, affordable, and sustainable transportation. With EVs expected to account for at least 30-40% of new ride-hailing and taxi vehicle purchases in 2027, the rollout of charging infrastructure is accelerating in key cities like Mexico City, Monterrey, and Guadalajara.

Johnny Lee, CEO and Chairman of U Power commented, "We are thrilled to support the cooperation between UNEX EV and Didi Mobility to promote battery-swapping vehicles in Mexico, contributing to the green transformation of the country's transportation industry with our proprietary UOTTA technology. By leveraging Didi's market leadership and extensive expertise, we look forward to serving local ride-hailing drivers and car rental customers with efficient, recyclable, and green vehicles that incorporate our solutions. Furthermore, U Power's participation in this fast-growing market shows the company's strategic alignment with Mexico's national mobility goals and the broader global shift toward zero-emission transportation."

Mr. Lee continued, "By supporting Mexico's high-growth, policy-supported ecosystem, U Power is strategically positioned to capitalize on increasing demand for electric vehicles and smart mobility solutions, while playing an active role in advancing Latin America's decarbonization efforts. With an established presence in markets like Peru, we are actively exploring additional opportunities across the region.  As we expand our partnership network, our focus remains on building an integrated ecosystem that connects vehicles, drivers, battery-swapping infrastructure throughout the region able to support long-term and scalable growth."

About DiDi Mobility Information Technology, Pte. Ltd.

DiDi Mobility Information Technology, Pte. Ltd. is a subsidiary of the leading mobility technology platform in China and multiple countries and regions within the globe, DiDi Global Inc (OTC: DIDIY). DiDi Global Inc. is a leading mobility technology platform and has served over 550 million users around the world. It offers a wide range of app-based services across Asia Pacific, Latin America, and other global markets, including ride hailing, taxi hailing, designated driving, hitch and other forms of shared mobility as well as certain energy and vehicle services, food delivery, and intra-city freight services.

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  

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SOURCE U Power Limited

FAQ

What is the partnership between U Power's UNEX EV and Didi Mobility in Mexico?

UNEX EV signed a Letter of Intent with Didi Mobility to deploy UOTTA™ battery-swapping vehicles for ride-hailing and car rental services in Mexico, including vehicle sales, spare parts, and maintenance services.

What is the size of Mexico's ride-hailing market and its growth potential?

Mexico's ride-hailing market reached $2.2 billion in 2024 and is projected to grow at a 13.2% CAGR, reaching $7.5 billion by 2033.

What percentage of new ride-hailing vehicles in Mexico will be EVs by 2027?

EVs are expected to account for 30-40% of new ride-hailing and taxi vehicle purchases in Mexico by 2027.

How does the UCAR partnership support Mexico's environmental goals?

The partnership supports Mexico's goal to reduce transport emissions, which account for 25% of national greenhouse gas emissions, by providing battery-swapping vehicles and promoting sustainable transportation solutions.

What are U Power's expansion plans in Latin America?

U Power has an established presence in Peru and is actively exploring additional opportunities across Latin America, focusing on building an integrated ecosystem for vehicles, drivers, and battery-swapping infrastructure.