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 and, building on its proprietary UOTTATM electric vehicle (EV) battery-swapping technology, today announced the signing of a Letter of Intent ("LOI") with FTT Holding Company LLC ("FTT Holding"), a US-based technology focused investment firm, for the establishment of a strategic Joint Venture ("JV") aimed at accelerating the Company's expansion in Southern Europe.
Under the terms of the LOI, FTT Holding plans to invest up to $50 million into the JV, once established. This capital infusion is expected to support U Power's strategic growth initiatives including its business expansion in Southern Europe, establishment of smart EV charging, battery‑swapping and next‑generation energy infrastructures.
In addition, U Power has entered into a Share Subscription Agreement (the "Agreement") with FTT Holding via the private placement of up to $10 million Class A ordinary shares, which will be issued at a significant premium to the current trading price and with a 39-month lock up period. The Agreement is anticipated to be finalized in January 2026, is subject to customary closing conditions.
Additional information about the JV and Agreement to be disclosed at a later date.
Jonny Lee, CEO of U Power, commented, "This investment from FTT Holding, a strategic step within our joint venture framework, is designed to strengthen our partnership and enhance our combined capabilities. We anticipate this capital infusion to support the execution of key shared programs and enable us to effectively expand our footprint in Europe. Together, we aim to collaborate on innovation and advance strategic initiatives that align with our shared long-term vision. Looking ahead, the Company plans to evaluate additional opportunities to enhance shareholder value and build long-term returns for investors."
