U Power’s $60M Gambit to Conquer Europe's EV Market with AI

SHANGHAI – December 16, 2025 – U Power, a provider of AI-powered energy and transportation solutions, has unveiled an ambitious plan to penetrate the Southern European electric vehicle market, backed by a potential $60 million commitment from a Miami-based investment firm. The company announced it has signed a Letter of Intent with FTT Holding Company LLC to form a strategic joint venture, a move designed to accelerate the deployment of its smart EV charging, battery-swapping stations, and next-generation energy infrastructure across the region.

The deal represents a pivotal moment for the Nasdaq-listed company (UCAR), which has seen its valuation hover near micro-cap territory. The agreement includes two key financial components: a commitment from FTT Holding to invest up to $50 million into the new joint venture, and a separate Share Subscription Agreement for a private placement of up to $10 million in U Power's Class A ordinary shares. This infusion of capital is earmarked to fuel the company's European expansion and build out its proprietary technology ecosystem.

A Strategic Lifeline and a Vote of Confidence

For U Power, the financial terms of the deal are as significant as the headline numbers. The $10 million share placement is set to be issued at a “significant premium” to the company’s current trading price, which has been languishing near its 52-week low. Perhaps more tellingly, the agreement includes a lengthy 39-month lock-up period for FTT Holding, signaling a long-term commitment that contrasts sharply with the short-term speculation often seen in the tech sector.

This structure provides a crucial financial lifeline for a company that, according to market analysis, has been burning through cash to fund its research and development. The capital injection is not just a resource but a powerful vote of confidence in U Power’s vision and technology. The long lock-up period suggests the new partner is not seeking a quick flip but is invested in the successful execution of a multi-year strategy.

"This investment from FTT Holding, a strategic step within our joint venture framework, is designed to strengthen our partnership and enhance our combined capabilities," said Jonny Lee, CEO of U Power, in the official announcement. "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."

The Southern European EV Gauntlet

The joint venture’s target market—Southern Europe—presents both a ripe opportunity and a formidable challenge. Countries like Italy, Spain, Portugal, and Greece are witnessing growing EV adoption, spurred by EU-wide emissions targets and national incentives. However, they lag significantly behind their Northern European counterparts in both EV sales and, critically, infrastructure density.

This gap is precisely what U Power and FTT Holding aim to exploit. While the region is actively building out traditional charging networks, the infrastructure remains unevenly distributed, particularly in rural areas. Furthermore, the market for battery-swapping stations for passenger cars is nascent, leaving an opening for a new entrant to establish a foothold without facing entrenched competition in that specific niche.

However, the path is fraught with obstacles. U Power will be competing not against other swapping companies, but against the established habit of plug-in charging. Success will require a massive educational effort and a deployment so seamless and convenient that it can persuade consumers to embrace a new model of vehicle ownership and refueling. The venture must navigate a fragmented landscape of regulations, build a robust supply chain, and secure prime real estate for its stations in a competitive market.

Beyond Swapping: An AI-Powered Energy Vision

U Power's strategy hinges on a technological proposition that extends far beyond simply swapping out a depleted battery. While its proprietary UOTTA™ battery-swapping technology promises a rapid, minutes-long refueling experience, the company's core differentiator lies in its AI-powered energy solutions. The vision is not just to power cars, but to integrate them into the energy grid itself.

The company aims to transform EVs into “dynamic energy assets.” Using sophisticated AI algorithms, U Power’s system is designed to optimize energy replenishment, balance grid loads by charging during off-peak hours, and potentially even feed energy back into the grid during times of high demand (vehicle-to-grid or V2G). This transforms an EV from a simple consumer of electricity into an active participant in a smart, resilient energy ecosystem.

This holistic approach could be a game-changer in a Europe increasingly reliant on intermittent renewable energy sources like solar and wind. By creating a network of distributed battery assets, U Power’s infrastructure could help stabilize national grids, a service that offers an entirely new revenue stream beyond the per-swap fee. This forward-thinking model positions the company not just as a transportation player, but as a key enabler of the green energy transition.

A Path Paved with Risk and Ambition

Despite the promising technology and fresh capital, the road ahead is complex. Executing a large-scale infrastructure rollout across multiple countries requires navigating a labyrinth of local and national regulations, securing permits, and forging partnerships with utilities, municipalities, and automakers—a notoriously difficult task given the lack of battery standardization in the EV industry.

Adding another layer of intrigue is the nature of the new partner. FTT Holding is a Miami-based firm whose stated focus includes cryptocurrency and non-fungible tokens (NFTs). While it also pursues strategic investments, its public track record in the capital-intensive world of energy infrastructure is not well-documented. This makes the partnership a bold, and somewhat unconventional, bet on U Power’s technology from a firm rooted in the volatile digital asset space.

The success of this ambitious joint venture will ultimately depend on flawless execution in a challenging operational environment. U Power has secured the capital and a partner willing to back its long-term vision. Now, it must prove that its AI-powered ecosystem can be deployed at scale, win over European consumers, and successfully navigate the immense logistical and regulatory hurdles of building the next generation of energy infrastructure from the ground up.