U Power To Launch Commercial Operation for its EV Battery Swapping System

SHANGHAI, April 8, 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 its battery-swapping and sharing model for two-wheeled and light four-wheeled electric vehicles (EVs) is poised for a formal commercial rollout in Wuhu, Anhui Province, China. The rollout, which is expected to take place during April 2024, follows a successful round of market validations in February. As part of this expansion, U Power plans to establish 60 power-swapping service points which will cater to over 800 customers.

The battery-swapping and sharing technology for two-wheeled and light four-wheeled EVs involves the use of identical battery cells and packaging methods. The battery packs for both types of EV are stored in a single battery-swapping station (BSS). When customers need to swap batteries, they can take one to two battery modules for two-wheeled EVs, or four to eight modules for light four-wheeled EVs. The battery-swapping process is straightforward and user-friendly, with the user verifying their identity at the BSS with their mobile phone and following a series of simple prompts to access and swap their batteries.

Mr. Jia Li, Chief Executive Officer and Chairman of the Board, commented, “Our battery-swapping and sharing model for two-wheeled and light four-wheeled EVs has garnered an excellent response from the market since its market validation in February. Through our collaborations with global partners leading up to this innovative launch, we have gained valuable insights into metrics including battery replacement frequency and daily vehicle mileage through our operational platform data. Notably, we have observed that the average daily mileage of a vehicle utilizing battery-swapping significantly surpasses that of vehicles which use traditional charging. This indicates that the battery-swapping model genuinely enhances the efficiency of our customers’ vehicles, allowing customers to spend less time charging and more time travelling. With market validation complete, we are now more confident than ever in our battery-swapping and sharing system. In addition to further developing our business in the Chinese market, we also aim to expand our reach into Southeast Asia, South America, and beyond, ultimately delivering quality services to our customers and superior returns to 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 may contain “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 U.S. Securities and Exchange Commission.

Contact

U Power Limited

Investor Relations Department

Email: [email protected]

Robin Yang, Partner

ICR, LLC

Email: [email protected]

Phone: +1 (212) 475-0415

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