U Power Limited Plunges 10.91% Despite EV Partnerships

U Power Limited (NASDAQ:UCAR) has experienced a significant drop of 10.91% in pre-market trading on May 6, 2025. This decline comes amidst a series of strategic partnerships and technological advancements that the company has been pursuing in the electric vehicle (EV) sector.

U Power Limited has recently announced a partnership with Sumitomo Mitsui Auto Leasing & Service (Thailand) Co., Ltd. to deliver Southeast Asia's first battery-swapping taxi fleet in Phuket. This initiative involves the deployment of 21 battery-swapping-enabled MG EP vehicles, which are equipped with U Power's proprietary UOTTA fully automated battery-swapping technology. This technology allows for a full battery replacement in just 3 minutes, ensuring minimal downtime and maximizing operational efficiency for taxis.

The deployment of this battery-swapping fleet aligns with Thailand's EV 3.5 Policy, which aims to subsidize EV adoption and establish a nationwide charging/swapping network by 2027. This move is expected to improve air quality and position Phuket as a leader in adopting smart EV solutions, reinforcing the island's commitment to sustainable tourism.

Johnny Lee, CEO of U Power Limited, highlighted the significance of this partnership, stating that it marks a leap forward for Southeast Asia's EV transition. The collaboration with Sumitomo Mitsui Auto Leasing and Auto Drive demonstrates the potential of battery-swapping technology to revolutionize urban mobility while aligning with Thailand's carbon neutrality goals.

Auto Drive EV Public Company Limited, a leading mobility service provider in Thailand, has also expressed its commitment to integrating U Power's vehicles into its fleet. The company aims to deploy up to 2,000 electric taxis by 2025, reducing carbon emissions in key tourist cities. This partnership includes comprehensive support for battery-swapping infrastructure, operational management, and financial services.

U Power's initiative establishes Thailand as a leading hub for EV innovation in ASEAN. The company is expanding its battery-swapping network across key urban centers and major transportation routes, focusing on commercial applications including taxis, trucks, and logistics fleets. As Thailand's EV market continues to grow rapidly, U Power's technology provides solutions to critical energy replenishment and grid stability challenges.