Japan’s tech titan SoftBank has unveiled plans to establish its own battery manufacturing unit tailored for AI data centers. This strategic move underlines the company’s ambition to enhance its data center operations and manufacturing capacity.
SoftBank’s new battery storage unit, operating under its mobile network arm, SoftBank Corp., will develop and manufacture cutting-edge battery technologies. To achieve this, SoftBank has joined forces with South Korean firms Cosmos Lab and DeltaX Co. This collaboration aims to leverage Cosmos Lab’s expertise in non-flammable zinc-halogen batteries, and DeltaX Co.’s prowess in manufacturing advanced energy storage systems.
At the heart of SoftBank’s initiative is the AI Data Center in Sakai City, Osaka Prefecture. The company plans to establish two significant facilities: the AX Factory, dedicated to AI operations and hardware manufacturing, and the GX Factory, focused on producing next-generation batteries and solar panels.
Initially, SoftBank aims to achieve a battery production capacity of one gigawatt-hour annually, aspiring to expand to multiple gigawatt-hours in the future. Even the modest initial goal positions the plant as one of Japan’s largest battery facilities.
Production is set to begin in early 2028 with mass production following in 2029. The primary focus will initially support SoftBank’s AI data centers. However, plans are underway to extend battery offerings to a broader commercial audience. Potential markets include grid applications, industrial sectors, and residential use, with an eye on global market expansion.
SoftBank aims to generate around ¥100 billion (approximately $637 million) in yearly revenues from this venture by the end of the decade. By aligning its battery production with data center needs, SoftBank is poised to play a significant role in the tech and energy sectors, cementing its presence in sustainable solutions.
