U Power Limited, a leading Chinese EV power solution company, has announced a strategic partnership with Velo Labs Technology Ltd., a global fintech company, to establish a groundbreaking battery infrastructure investment ecosystem in Thailand. This collaboration is set to leverage Velo's advanced blockchain technology to create a battery bank asset and fund trading platform, designed to attract external funding and foster the large-scale development of the battery bank industry.
The initiative will integrate battery assets from diverse 'UOTTA' battery bank scenarios, encompassing batteries for both four-wheel and two-wheel electric vehicles, those from battery swap stations, and batteries utilized in energy storage projects. This move is timely, as battery swapping technology gains momentum in China, aligning with the country's push towards electric vehicles to mitigate global warming.
Jia Li, Chairman and CEO of U Power, highlighted the partnership's significance, noting the increasing importance of battery banks as electric vehicles and green applications expand. The creation of a value system and trading model for battery assets is expected to draw more investors to this burgeoning market.
U Power's innovative battery-swapping technology enables quick battery replacement for EVs, addressing key consumer concerns like time and range anxiety. With a robust network across China's lower-tier cities and several battery-swapping stations already in operation, U Power is well-positioned to contribute to this venture.
Beyond the trading platform, U Power and Velo Labs aim to manage the entire lifecycle of battery assets, from cascade utilization to eco-friendly disposal, enhancing battery utilization rates and residual value. Velo Labs, with its expertise in blockchain technology, is poised to be instrumental in developing the platform.
The partnership taps into the vast potential of China's battery swapping and electric commercial vehicles market, projected to grow significantly in the coming years. This collaboration not only marks a pivotal step towards sustainable energy management in the EV industry but also supports global efforts to reduce carbon emissions through innovative technology and infrastructure.
