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.”
SOURCE: UPower
