U Power Signs a Letter of Intent with a Hong Kong-Based Technology Company for the Purchase and Deployment of 300 Battery-Swapping Compatible Vehicles

Rhea-AI Summary

U Power Limited (Nasdaq: UCAR) has signed a Letter of Intent with a Hong Kong-based dashcam manufacturer for the purchase of 300 MGEP swappable-battery compatible EVs. The client has already submitted the initial deposit, with final terms subject to a definitive sales agreement.

The vehicles will operate using U Power's recently launched smart battery-swapping station in Hong Kong. Drivers will earn redeemable tokens for each battery swap, which can be exchanged for electricity tariff credits. This follows U Power's successful deployment of Hong Kong's first smart battery-swapping station in June 2025.

Positive

• Secured LOI for sale of 300 battery-swapping compatible EVs in Hong Kong market
• Initial deposit already received from the client
• Potential for multiple revenue streams from both vehicle sales and battery-swapping services
• Strategic expansion in Hong Kong following successful deployment of first battery-swapping station

Negative

• Final agreement still pending and subject to further negotiations
• Revenue impact and financial terms not disclosed

Insights

Electric Vehicle Industry Analyst

U Power secures potential 300-vehicle deal in Hong Kong, advancing its battery-swapping ecosystem with significant commercial validation.

U Power's Letter of Intent (LOI) with a Hong Kong dashcam manufacturer represents an important commercial milestone for the company's battery-swapping technology. The deal involves 300 MGEP swappable-battery compatible EVs, with an initial deposit already submitted, though the agreement remains subject to further negotiation and a definitive sales agreement.

The strategic significance extends beyond the vehicle sales themselves. This deployment creates a complete ecosystem demonstration by connecting the vehicles with U Power's recently launched battery-swapping station in Hong Kong. This establishes a real-world implementation of their token-based incentive structure, where drivers earn exchangeable tokens for each battery swap.

For U Power, this agreement represents validation of their UOTTA™ technology in a key market. Hong Kong is an ideal testbed due to its dense urban environment, where the speed advantage of battery swapping (versus charging) can deliver maximum value. The company is positioning its technology not just as a product offering but as a platform that can generate multiple revenue streams – from vehicle sales, station deployment, and ongoing swapping services.

While this LOI is promising, investors should note that it's an initial commitment with contingencies. The deposit indicates serious intent, but the timeline for finalizing the agreement and revenue recognition remains undefined. This deployment will serve as a crucial reference case to demonstrate commercial viability and potentially accelerate U Power's global partnership pipeline that the company hints at in the announcement.

SHANGHAI, Aug. 4, 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™ electric vehicle (EV) battery-swapping technology, today announced the signing of a Letter of Intent (the "LOI") with a Hong Kong-based designer and manufacturer of vehicle dashcams (the "client') to deploy battery-swapping compatible vehicles in the market.

As per the terms of the LOI, the client will purchase 300 MGEP swappable-battery compatible EVs. The client has already submitted the initial deposit, and the fulfillment of the order is currently subject to further negotiations and the execution of a definitive sales agreement.

Once the agreement is finalized and orders are delivered, these vehicles will be deployed into commercial operation. Participating drivers will utilize U Power's recently inaugurated first smart battery-swapping station in Hong Kong to efficiently swap batteries. Each battery swap will earn drivers tokens, which can then be redeemed and traded for electricity tariff credits, creating a new incentive structure and promoting sustainable usage.

"We are pleased to take this important first step with U Power toward accelerating the adoption of battery-swapping electric vehicles in Hong Kong," said a spokesperson for the client. "As a technology-driven company committed to operational efficiency and environmental responsibility, we see strong potential in U Power's innovative battery-swapping ecosystem. By introducing swappable-battery EVs to the Hong Kong market, we aim to improve driver productivity while significantly reducing our carbon footprint. We look forward to deepening this collaboration and exploring more possibilities as Hong Kong moves toward smarter, greener mobility."

Johnny Lee, CEO and Chairman of U Power commented, "Following the successful deployment of Hong Kong's first smart battery-swapping station in June, we are now working with our partners and clients to bring 300 compatible EVs into the market, an important milestone that underscores our technological leadership and market presence. Our advanced battery-swapping platform is designed to scale rapidly, enabling us to transform our robust pipeline of global partnerships into tangible and diversified revenue streams, not just from the sale and deployment of smart stations but also from battery-swapping services. As we accelerate our expansion in Hong Kong SAR and other strategic markets, we remain committed to driving innovation and delivering smarter, cleaner, and more efficient mobility solutions. Further updates on our progress will follow as we continue to execute on our growth strategy."

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

How many EVs will U Power (UCAR) supply under the new Hong Kong agreement?

U Power will supply 300 MGEP swappable-battery compatible EVs to the Hong Kong-based dashcam manufacturer, subject to final agreement.

What is the status of U Power's (UCAR) battery-swapping station in Hong Kong?

U Power successfully deployed Hong Kong's first smart battery-swapping station in June 2025, which will service the newly ordered vehicles.

How does U Power's (UCAR) token system work for battery swapping?

Drivers earn tokens for each battery swap, which can be redeemed and traded for electricity tariff credits, creating an incentive structure for sustainable usage.

Has U Power (UCAR) received any payment for the 300-vehicle order?

Yes, the client has submitted an initial deposit, though the final agreement is still subject to negotiations.

What are the revenue opportunities for U Power (UCAR) in this agreement?

U Power can generate revenue from multiple streams, including the sale of EVs, deployment of smart stations, and ongoing battery-swapping services.