The one-year agreement aims to raise capital through the creation of a joint investment fund, according to a statement issued by U Power Limited, which is based in Shanghai, China’s economic “capital”. Both parties have agreed to set up a regular schedule of meetings to evaluate deals and exchange information and to create a team that will be fully responsible for developing the projects, the statement reads.
Quoted in the same press release, the executive director of the Chinese startup, Jia Li, said he believed that the cooperation agreement with Magnify Capital Partners would enable the development and expansion of the business in Portugal and other Portuguese-speaking countries and regions.
“The cooperation marks our debut in this market and is expected to improve our industrial competitiveness and influence,” he said. “We expect to see further progress in our business development efforts, both domestically and abroad, while generating more value for our shareholders,” he added.
Founded in 2013, U Power Limited is listed on the New York Stock Exchange on the Nasdaq index, which brings together some of the world’s largest technology companies.The company provides services for electric vehicles, including charging stations, in several cities in China and operates a factory in the city of Zibo, Shandong province, in the north of the Asian country.
Last year, almost six million electric cars were sold in China – more than in all the other countries in the world combined.The size of the Chinese market and strong state support have fuelled the rise of dozens of car brands, battery manufacturers or infrastructure builders for charging and servicing electric cars.
Last week, the president of the European Commission, Ursula von der Leyen, announced an investigation into the subsidies China grants its electric vehicle manufacturers. “The world markets are flooded with cheaper Chinese electric vehicles, and their price is kept artificially low thanks to huge state subsidies,” she explained in a State of the Union speech.
