Japanese technology conglomerate SoftBank has announced plans to launch a large-scale battery manufacturing business in Japan aimed at supporting the rapidly increasing electricity demand driven by artificial intelligence infrastructure. The initiative marks another major expansion of SoftBank’s AI-focused strategy as the company continues investing heavily in data centers, cloud computing, and next-generation digital infrastructure.
According to the company, the new battery business will focus on producing advanced battery cells and Battery Energy Storage Systems (BESS) at gigawatt-hour scale. SoftBank plans to establish manufacturing operations at its developing AI infrastructure hub in Sakai City, Osaka, which is being built on the site of a former Sharp LCD factory. The company aims to begin mass production around fiscal year 2027 and scale operations into one of Japan’s largest energy storage manufacturing facilities.
To accelerate development, SoftBank has partnered with South Korean firms COSMOS LAB and DeltaX. The collaboration with COSMOS LAB will focus on developing next-generation zinc-halogen battery cells designed to offer high safety and energy efficiency while eliminating fire risks commonly associated with lithium-ion batteries. Meanwhile, DeltaX will contribute advanced energy storage technologies aimed at maximizing battery density and operational performance.
SoftBank stated that the batteries will primarily support the company’s expanding AI data center operations, which are expected to consume enormous amounts of electricity as AI model training and inference workloads continue growing worldwide. The company also plans to deploy the systems for industrial applications, renewable energy storage, factories, and residential use in the future. Industry experts say stable energy infrastructure is becoming one of the biggest challenges facing the global AI industry as data center power requirements rise sharply.
The move reflects SoftBank’s broader transformation into a major AI infrastructure player. In recent months, the company has expanded investments in AI chips, cloud infrastructure, OpenAI partnerships, and next-generation server manufacturing initiatives. Analysts believe the battery project demonstrates how technology firms are increasingly integrating energy systems directly into AI infrastructure strategies to secure long-term operational stability. SoftBank reportedly aims to generate more than 100 billion yen in annual revenue from its domestic battery business by 2030.
