SoftBank Launches New Battery Business to Power AI Infrastructure

Japan-based SoftBank Group announced the launch of a new battery business aimed at producing advanced battery cells and energy storage systems to support data centers, addressing the rapidly increasing demand for electricity being driven by AI adoption.

Through the initiative, SoftBank said that it aims to achieve mass production on a gigawatt-hour (GWh)-per-year scale by around FY2028, and to reach annual revenue of more than ¥100 billion (USD$635 million) from its domestic battery business by FY2030.

The company said that it will utilize the AI data center it is developing at the former Sharp Corporation factory site in Osaka as a core hub for the establishment of its AX Factory and GX Factory initiatives. AX Factory will serve as a hub for AI data center operations and hardware manufacturing, while GX Factory will focus on the manufacturing of next-generation batteries, solar panels and related products.

According to SoftBank, GX Factory is expected to begin manufacturing battery cells and energy storage systems in the fiscal year ending March 31, 2028, with the goal of achieving mass production on a GWh-per-year scale by around FY2028.

The company added that it will partner with South Korea-based battery company Cosmos Lab and AI firm DeltaX on the initiative.

SoftBank said that it has begun collaborating with Cosmos Lab to jointly develop next-generation zinc-halogen battery cells combining high safety and non-flammable characteristics with advanced energy storage performance. According to the company, the zinc-halogen batteries use pure water as an electrolyte, eliminating fire risks associated with conventional lithium-ion batteries while achieving energy efficiency equal to or greater than lithium-ion technologies.

The companies aim to establish mass production technology at an early stage and commence large-scale production around FY2027.

For energy storage systems, SoftBank said it has also partnered with DeltaX to develop and manufacture high energy-density storage systems designed to support AI data center operations.

SoftBank said:

“Through this business, SoftBank will actively promote initiatives to ensure a stable supply of electricity and enable efficient energy utilization while contributing to the development of next-generation power infrastructure in Japan.”