Nasdaq-listed U Power Limited has broadened its outlook beyond electric-vehicle battery replacement by introducing a two-part strategy dubbed Battery-Bank and Battery-Token. The program, announced at a Web 3.0 ecosystem launch event in Hong Kong on 20 June 2025, positions the Shanghai-headquartered company to evolve from hardware supplier to full-scale energy-grid solutions provider. Executives said the plan leverages blockchain, token economics and artificial-intelligence tools to convert parked or idle EV batteries into flexible, revenue-generating energy assets.
The initiative received public backing from strategic investor Chatchaval Jiaravanon, a member of the CP Group family in Thailand. He told attendees that U Power’s integration of resilient AI and decentralized-ledger technology places it at the centre of a global transition toward greener, more resilient power systems. According to the investor, the firm’s expanding footprint—which already covers Hong Kong, Macau, Singapore and pilot sites in Latin America and Europe—could help accelerate decarburization by turning EV infrastructure into distributed storage for renewable electricity.
Inside the Battery-Bank concept
At the core of the new vision lies a digital marketplace where surplus battery capacity can be pooled, tokenized and traded. Management explained that each detachable pack deployed through U Power’s proprietary UOTTA™ swapping stations will receive a unique on-chain identifier. When drivers exchange depleted units for charged ones, the removed batteries enter the Battery-Bank, making them available for grid-balancing services such as peak-shaving or frequency regulation. Smart contracts then allocate revenue among station owners, vehicle operators and the company itself, based on usage metrics recorded in real time.
By layering an automated payment rail over its physical network, the firm expects to create a circular economy in which energy stored in EV batteries can be monetized multiple times before the packs reach end-of-life. Management said the approach not only enhances return on investment for fleet operators but also improves grid stability as renewable penetration rises.
Battery-Token: Turning kilowatt-hours into digital assets
Complementing the storage pool is the Battery-Token, a blockchain-based asset that represents a claim on the energy or services supplied by Battery-Bank units. U Power plans to issue the tokens as part of a broader Web 3.0 ecosystem, enabling investors to purchase exposure to the aggregated capacity, traders to hedge electricity price swings and consumers to prepay for future swapping services. Company engineers noted that AI-driven forecasting models will optimize token pricing by analyzing factors such as local demand patterns, renewable generation forecasts and battery-health data.
Regulatory compliance and asset security are central to the design. Executives said the tokens would be backed by verifiable energy reserves logged on distributed ledgers, while identity-verification layers would satisfy know-your-customer requirements in each operating jurisdiction.
Leveraging the UOTTA hardware platform
U Power’s existing portfolio includes modular swap stations for passenger cars and rental cabinets for two-wheeled vehicles. The company manufactures both the infrastructure and the detachable packs, allowing vertical integration across production, deployment and aftermarket services. The firm has also begun offering software upgrades for third-party station owners, creating an additional recurring-revenue stream. Management argued that layering a tokenized energy-bank on this foundation capitalizes on the installed base without requiring extensive new construction.
Global roll-out and growth prospects
The leadership team outlined an expansion strategy targeting markets with high EV adoption and liberalized electricity sectors. Planned pilots in Peru, Mexico and Portugal will test regional variations in grid interconnection rules and energy pricing, while Southeast Asian hubs will serve as R&D centres for AI optimization. Analysts following the firm noted that success could differentiate U Power from pure-play vehicle-swap competitors by embedding the company deeper into national energy-transition agendas.
By combining detachable-battery hardware with decentralized finance mechanisms, U Power aims to blur the line between mobility services and grid infrastructure. If the Battery-Bank and Battery-Token framework scales as intended, the model could demonstrate how EV ecosystems can evolve into multifaceted platforms for both transportation and smart-energy services, potentially setting a precedent for the broader electrification sector.
