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.”
