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 the Company’s subsidiary, Youpin Automobile Service Group Co., Ltd., pursuant to a strategic cooperation agreement and an equipment procurement contract for the sale and installation of two UOTTA battery-swapping stations, with Zhejiang Petroleum Energy Sales Co., Ltd. (“Zhejiang Petroleum”), has started the installation for a second station for electric taxis in Anji county, Zhejiang Province. Zhejiang Petroleum is a comprehensive energy integrated supply and service provider owned by China’s energy conglomerate, Zhejiang Provincial Energy Group. In July 2022, U Power delivered the first UOTTA battery-swapping station in Anji county, which caters to the local battery-swapping needs of electric taxis and endeavors to reduce the operational costs for local taxi service providers. The second station is expected to be delivered in September and open to the public by October 2023.

The new station will feature a design that allows simultaneous battery swapping on both sides of the vehicle, which is anticipated to enhance the efficiency of the battery-swapping process, minimize waiting time, and optimize battery usage. Additionally, through intelligent terminals, the station integrates solar power generation, station-side energy storage, as well as a municipal power supply system, and is expected to provide electric taxis with superior, efficient and convenient battery-swapping services.

Mr. Jia Li, Chief Executive Officer, and Chairman of the Board of Directors of the Company, commented, “We are excited to further our cooperation with Zhejiang Petroleum to expand our presence in the new energy arena. Zhejiang Province ranks fourth in terms of GDP in China in 2022 and places great emphasis on the green economy, according to the National Bureau of Statistics of China. Zhejiang Petroleum is accelerating its new energy business development and jointly promoting electric vehicle battery swapping services with U Power. Through continuous market development, we believe the integration of new energy technologies can effectively meet the need to fast-charge electric vehicles, and the business model can be replicated. We are confident that the integration of solar power generation, energy storage, charging, and battery swapping can effectively promote new energy vehicle-related businesses globally.”

About U Power Limited

U Power Limited is a vehicle sourcing services provider, with a vision to becoming an EV market player primarily focused on its proprietary battery-swapping technology, or UOTTA technology, which is an intelligent modular battery-swapping technology designed to provide a comprehensive battery power solution for EVs. Since its operation in 2013, the Company has established a vehicle sourcing network in China’s lower-tier cities. The Company has developed two types of battery-swapping stations for compatible EVs and is operating one manufacturing factory in Zibo City, Shandong Province, China.