U Power (UCAR) Prnewswire·2024-10-21 11:00Core Insights - U Power Limited has signed a Memorandum of Understanding with Ualabee Corp to integrate its UOTTA battery-swapping technology into Ualabee's ride-hailing services in South America, marking a significant step in U Power's global expansion strategy [1][3]. Company Overview - U Power Limited is a vehicle sourcing services provider aiming to become a comprehensive electric vehicle (EV) battery power solution provider, primarily focused on its proprietary UOTTA battery-swapping technology [5]. - The company has been operational since 2013 and has established a vehicle sourcing network in China's lower-tier cities, with a manufacturing facility in Zibo City, Shandong Province, China [5][6]. Partnership Details - The partnership with Ualabee aims to revolutionize South America's ride-hailing industry by integrating U Power's UOTTA battery-swapping system and compatible EVs into Ualabee's operations [3]. - The collaboration includes deploying battery-swapping infrastructure, implementing digital payment systems, and utilizing data analytics to optimize operations [3]. - U Power plans to introduce its first UOTTA battery-swapping station in Peru in Q1 2025, with a capacity to serve 100 vehicles, and aims to build an additional 6-8 stations throughout 2025, increasing total capacity to 800-1,000 vehicles [3]. Market Context - The South American ride-hailing market is expected to exceed $1.5 billion, with a significant transition towards electric vehicles anticipated over the next three years, including the replacement of 80,000-100,000 fuel-powered vehicles [2]. - Ualabee intends to replace 5,000 of its fuel-powered vehicles with electric vehicles each year for the next five years, with an estimated 30% adopting the UOTTA battery swapping model [3]. Strategic Goals - The partnership is expected to create synergies by leveraging U Power's technology and Ualabee's market presence, addressing key concerns about EV adoption and reducing costs [4]. - U Power's Chairman and CEO emphasized that this collaboration validates the scalability of their technology and business model, opening new revenue streams in a high-growth market [4].