U Power signs Memorandum of Understanding with Ualabee Corp.

U Power (UCAR) announced the signing of a Memorandum of Understanding with Ualabee Corp., a South American mobile travel platform. The strategic partnership aims to integrate U Power’s proprietary UOTTA battery-swapping technology into Ualabee’s ride-hailing services across South America, marking a significant step in the company’s global expansion strategy. The strategic partnership is set to revolutionize South America’s ride-hailing industry by integrating U Power’s innovative UOTTA battery-swapping system and compatible EVs into Ualabee’s operations. This comprehensive collaboration goes beyond technology provision, encompassing the deployment of battery-swapping infrastructure, implementation of digital payment systems, and utilization of data analytics to optimize operations. The partnership will unfold in phases, starting with the introduction of UOTTA technology and EVs in key markets, and potentially progressing to local manufacturing of battery-swapping commercial vehicles. In the first quarter of 2025, U Power will introduce its first UOTTA battery-swapping station in Peru, which will have the capacity to serve 100 vehicles equipped with swappable batteries. Throughout 2025, the Company will build an additional 6-8 battery-swapping stations in Peru, bringing the total capacity to 800-1,000 vehicles. Meanwhile, for each of the next five years, Ualabee intends to replace 5,000 of its fuel-powered vehicles with electric vehicles, with an estimated 30% of these adopting the UOTTA battery swapping model. This phased approach underscores both companies’ long-term commitment to sustainable transportation in South America, promising enhanced efficiency and environmental benefits for the region’s urban mobility sector.