China-based EV startup U Power Limited entered into a framework strategic cooperation agreement with Quantum Solutions Co., Ltd., the first and only independent Japanese electric vehicle (EV) manufacturer listed on the Tokyo Stock Exchange, to develop business initiatives relating to marketing, research and development of new energy vehicles, financial technologies, battery banks, EV charging and battery-swapping operations and services in Japan.

Pursuant to the Framework Agreement:

1. Quantum Solutions agrees to advise on the selection and development of suitable EV models by leveraging its deep understanding of Japan’s EV market and consumer needs;

2. U Power agrees to provide battery-swapping technology, products, and compatible cloud service platforms according to Quantum Solutions’ requirements;

3. both parties intend to recruit other strategic partners in the field of new energy storage, such as battery developers, and may establish a joint venture in the future to further pursue their strategic cooperation; and

4. specifics of any such strategic cooperation will be determined in separate agreements as soon as practicable.

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 beginning 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.