Shares of U Power (NASDAQ:UCAR) are shooting higher after the company announced a commercial roll out of its battery-swapping and sharing model.
The battery-swapping and sharing model for two-wheeled and light four-wheeled electric vehicles (EVs) is expected to make a commercial debut in Wuhu, Anhui Province, China.
The rollout is expected to take place during April 2024 following a successful round of market validations in February.
U Power plans to establish 60 power-swapping service points, catering to over 800 customers.
The technology uses identical battery cells and packaging methods and the battery packs for both types of EV are stored in a single battery-swapping station (BSS).
Customers can take one to two battery modules for two-wheeled EVs, or four to eight modules for light four-wheeled EVs.
"Notably, we have observed that the average daily mileage of a vehicle utilizing battery-swapping significantly surpasses that of vehicles which use traditional charging," said CEO and Board Chairman Jia Li.
"This indicates that the battery-swapping model genuinely enhances the efficiency of our customers' vehicles, allowing customers to spend less time charging and more time travelling."
Price Action: UCAR shares are trading higher by 65.5% at $7.76 in premarket on the last check Monday.