U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a provider of AI-powered solutions for next-generation energy grids and intelligent transportation systems, building on its proprietary UOTTATM electric vehicle (EV) battery-swapping technology, today announced that it has signed an initial sales agreement with Polestar Energy S.L. ("Polestar Energy"), a Spanish company specialized in sustainable and innovative energy solutions, for the purchase and deployment of twenty UOTTA™ battery-swapping Geely Farizon-UNEX electric vans and a supporting semi-autonomous three-slot smart battery-swapping station, valued at €540,000, for the Southern European market.
This sales agreement with Polestar Energy marks U Power's first ever order in Europe pertaining to electric vans and dedicated battery-swapping stations. By combining Polestar Energy's strong presence in Southern Europe with U Power's proprietary UOTTATM technology, the two parties aim to accelerate the adoption of smart battery-swappable electric vehicles in commercial use. Together, they seek to advance a sustainable transportation and smart energy replenishment model across Southern Europe, one of the world's fastest growing EV markets, anticipated to reach $65.7 billion by 2030, growing at a CAGR of 14%.
The signing of this sales agreement with Polestar Energy, U Power's first in Europe, marks U Power's pioneering efforts in bringing battery-swapping vans into the European market to support the region's green transportation transformation. The Company continues to expand its geographical footprint in key markets, carrying on the momentum from its first official order in South America, via the agreement with Treep Mobility in Peru, for the purchase and deployment of fifty battery-swapping two/three-wheeled vehicles, eight cabinets and corresponding number of batteries in September 2025.
Under the agreement, U Power will deliver twenty Geely Farizon-UNEX electric vans, a battery-swappable model co-developed with UNEX EV, to Polestar Energy for deployment initially in Italy. This initial order also includes a supporting three-slot smart battery-swapping station. The parties intend to expand their collaboration, potentially adding up to 2,000 additional vans and a proportionate number of battery-swapping stations to gradually expand operations in Spain, Portugal, and Albania. Of note, earlier this year, U Power established a joint venture with Associação Nacional dos Transportes Rodoviários em Automóveis Ligeiros ("ANTRAL") to deliver a number of battery swapping stations able to service 150-200 electric vehicles for taxi drivers in Portugal.
Johnny Lee, CEO and Chairman of U Power commented, "We are thrilled to announce our first sales agreement of electric vans with Polestar Energy, which marks another significant milestone, and reflects the growing market recognition of our battery-swapping solutions, spanning across Southeast Asia, South America, and now Southern Europe. We are confident this is only the first step of our expansion in this key market, and look forward to not only deepening our partnership with Polestar Energy, but also expanding U Power's market presence to help accelerate the adoption of clean energy and transportation solutions in the region."
