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SHANGHAI - U Power Limited (NASDAQ:UCAR), a small-cap EV technology company with a market capitalization of $18 million, announced Wednesday it has signed a Memorandum of Understanding with Beijing Foton International Trade Co., Ltd. to jointly promote battery-swapping compatible electric commercial vehicles in Southeast Asia, South America, Hong Kong SAR, and Macau SAR markets. According to InvestingPro analysis, the company appears undervalued at current levels despite facing profitability challenges.
Under the agreement, U Power will provide technological support to incorporate battery-swapping capabilities on Beijing Foton vehicles and develop battery-swapping stations for these electric vehicle models. Beijing Foton will gather and share performance data including battery charging, health, and capacity records. While U Power has demonstrated impressive revenue growth of 124% in the last twelve months, InvestingPro data shows the company is currently operating at a negative EBITDA of $6.1 million.
Beijing Foton is a wholly-owned subsidiary of Beijing Foton Motor Co., Ltd., which exported 153,000 new energy vehicles in 2024 and has maintained a leading position in China’s commercial vehicle exports for 14 consecutive years.
The collaboration focuses on electric heavy trucks, buses, and vans compatible with U Power’s proprietary modular battery-swapping technology.
"This partnership marks another significant step forward in our strategy of expanding OEM partner base," said Johnny Lee, CEO and Chairman of U Power, according to the press release statement. With a healthy current ratio of 1.85, the company maintains strong liquidity to support its expansion plans. Discover more insights about U Power’s financial health and growth potential with InvestingPro, which offers 11 additional exclusive ProTips for informed investment decisions.
The companies indicated they may potentially expand the agreement to include additional cooperation opportunities in the future.
U Power provides electric vehicle battery-swapping solutions and aims to establish a comprehensive battery-swapping ecosystem in several key markets through this partnership.
In other recent news, U Power Limited has entered into an agreement with an Electric Service Provider in Macau to deploy its UOTTA battery-swapping stations and facilitate sales of compatible electric vehicles. This partnership aims to sell approximately 600 four-wheeled and 5,000 two-wheeled battery-swapping vehicles over three years, as well as manage the installation and maintenance of the battery-swapping infrastructure. In Southeast Asia, U Power has delivered its first fleet of battery-swapping taxis to Auto Drive EV Public Company Limited in Thailand, in collaboration with Sumitomo Mitsui Auto Leasing & Service. This initiative, featuring 21 MG EP vehicles equipped with UOTTA technology, supports Thailand’s EV 3.5 Policy and aims to improve air quality and operational efficiency in Phuket. Additionally, U Power has partnered with Portugal’s national road transport association ANTRAL to introduce battery-swapping technology for taxis, showcasing this initiative at ANTRAL’s 50th Anniversary. The project plans to deploy between 150 and 200 electric vehicles, supported by rapid-swap stations to minimize downtime. U Power is also in discussions with Portugal’s leading energy provider, Galp, to integrate these stations into existing service locations. These recent developments highlight U Power’s ongoing efforts to expand its battery-swapping solutions globally, aiming to enhance sustainable transportation in various regions.
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