U Power signs deal with IoTex for blockchain-backed asset purchase

Published 23/07/2025, 13:06
U Power signs deal with IoTex for blockchain-backed asset purchase

SHANGHAI - U Power Limited (NASDAQ:UCAR), a small-cap company with a market value of $17.48 million and significant revenue growth of 124% in the last twelve months, announced Wednesday it has signed a memorandum of understanding with blockchain platform IoTex for the purchase of real-world assets backed by corporate bonds issued by U Power.

Under the strategic partnership, both companies will explore tokenization solutions for these assets, incorporating AI technologies for asset management. The agreement is expected to strengthen U Power’s capital structure while supporting the development of its UOTTA electric vehicle battery-swapping technology. According to InvestingPro analysis, this move comes as the company faces challenges with cash burn and maintaining profitability, though it maintains a healthy current ratio of 1.85.

"This partnership with IoTeX supports U Power’s Web 3.0 initiative for the expansion of our battery-token and battery-bank operations," said Johnny Lee, CEO and Chairman of U Power.

The collaboration includes HabitTrade, a global multi-asset trading platform, which will serve as the structuring and execution agent for the token-equity integration.

U Power describes itself as a provider of AI-integrated energy solutions connecting electric vehicles with energy infrastructure. IoTex, founded in 2017, focuses on transforming machine-generated data into collective intelligence for AI applications.

The announcement comes as U Power shifts its business focus from being primarily a distributor of battery-swapping stations to providing comprehensive AI-integrated solutions for energy grids and transportation systems.

The information in this article is based on a press release statement from U Power Limited. InvestingPro analysis suggests the stock is currently undervalued, with 11 additional key insights available to subscribers, including detailed financial health metrics and growth prospects.

In other recent news, U Power Limited has made significant strides in expanding its electric vehicle services. The company announced an Electric Service Provider agreement to introduce its UOTTA battery-swapping stations in Singapore, marking its entry into this market. This follows a similar agreement in Macau, where U Power will deploy its battery-swapping stations and facilitate sales of compatible electric vehicles. Additionally, U Power signed a Memorandum of Understanding with Beijing Foton International Trade Co., Ltd. to promote battery-swapping compatible electric commercial vehicles in Southeast Asia, South America, Hong Kong SAR, and Macau SAR.

In a notable development, U Power delivered the first fleet of battery-swapping taxis in Southeast Asia to Auto Drive EV Public Company Limited in Thailand. This initiative, in collaboration with Sumitomo Mitsui Auto Leasing & Service (Thailand) Co., Ltd., involves 21 MG EP vehicles equipped with U Power’s technology, aiming to enhance sustainable transportation in Phuket. The UOTTA battery-swapping system, capable of replacing a vehicle’s battery in three minutes, was recently showcased at the 2025 Bangkok International Motor Show. This technology is expected to improve operational efficiency for taxis, aligning with Thailand’s policy to support electric vehicle adoption and infrastructure development by 2027.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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