SoftBank Corp. has announced plans to enter the battery manufacturing sector in Japan, aiming to support growing electricity demand from artificial intelligence data centers. The company will leverage its forthcoming AI data center on the former Sharp factory site in Sakai City, Osaka, as the cornerstone of this initiative. That site will host an AX Factory for AI infrastructure hardware and data center operations, alongside a GX Factory dedicated to producing next-generation batteries, solar panels and related products.
Production of battery cells and energy storage systems is slated to begin in the fiscal year ending March 2028, with mass-production targets set at a gigawatt-hour-per-year scale by fiscal 2028. Initially, these batteries will be installed in SoftBank’s large AI data centers in Japan. Over time, the company plans to expand deployments to grid stabilization, factory operations, industrial applications and residential use, with potential entry into overseas markets in the medium term.
SoftBank has forged a collaboration with South Korea’s COSMOS LAB to develop zinc-halogen battery cells that use pure water electrolytes rather than flammable organic compounds, reducing fire risk compared to conventional lithium-ion technology. The partners aim to establish mass-production capabilities and begin large-scale output around fiscal 2027.
For energy storage systems, SoftBank is working with DeltaX Co. to achieve industry-leading energy density. DeltaX’s advanced cell-connection and cell-to-pack technologies are designed to minimize unused space and enhance overall performance. SoftBank cites a demonstration of 5.37 MWh in a standard containerized lithium-ion system and intends to match or exceed this capacity with its new cells. The company will integrate these systems with an AI-driven energy management platform that forecasts power demand, coordinating charging and discharging to align with consumption patterns and renewable generation.
This battery venture builds on SoftBank’s existing strategy to convert part of the Sakai LCD plant into a roughly 750,000 m2 AI data center, initially equipped with over 150 MW of power capacity and expandable to more than 400 MW. SoftBank projects that the domestic battery business could generate over ¥100 billion in annual revenue by fiscal 2030, complementing its broader investments in AI infrastructure.
Source: Press Insider
