U Power Limited, a Chinese EV power solution company listed on NASDAQ under the ticker UCAR, has announced a strategic partnership with Velo Labs Technology Ltd., a global fintech firm, to establish a battery infrastructure investment ecosystem in Thailand. This collaboration is set to create a battery bank asset and fund trading platform, utilizing Velo's blockchain technology to attract external funding and foster the large-scale development of the battery bank industry.
The platform will aggregate battery assets from various 'UOTTA' battery bank scenarios, including those for electric vehicles, battery swap stations, and energy storage projects. This initiative aligns with the growing adoption of battery swapping technology in China, as the country accelerates its shift towards electric vehicles to mitigate global warming. Jia Li, Chairman and CEO of U Power, highlighted the partnership's significance, noting the increasing importance of battery banks in supporting the large-scale development of electric vehicles and other green applications.
U Power's innovative battery-swapping technology enables quick battery replacements for EVs, addressing common concerns such as charging time and range anxiety. With a robust network of wholesalers and dealers across China's lower-tier cities, the company has already made significant strides in the EV sector, including the sale and delivery of eleven battery-swapping stations.
The partnership also encompasses the management of battery assets' lifecycle, from cascade utilization to environmentally friendly disposal, aiming to enhance battery utilization rates and residual value. Velo Labs, with its expertise in blockchain technology and financial infrastructure, is poised to contribute significantly to the development of the trading platform.
The potential for battery swapping and electric commercial vehicles in China is vast, with projections indicating a market size of RMB 176,615.1 million by 2026, growing at a CAGR of 68.1%. This collaboration not only positions U Power to tap into this burgeoning market but also represents a pivotal move towards sustainable energy management in the EV industry, contributing to global carbon reduction efforts.
