SoftBank plans to make large-scale batteries for AI data centres in Japan

[TOKYO] SoftBank Group’s mobile unit said that it plans to begin large-scale battery cell manufacturing at its Sakai, Osaka plant to address growing power demand for artificial intelligence services.

SoftBank will partner with South Korea’s Cosmos Lab and DeltaX to enable mass production from the fiscal year starting next April, the company said on Monday (May 11). The aim is to output energy storage systems at a scale of one gigawatt-hour per year, SoftBank said, which would make it one of the largest facilities in Japan, according to data from BloombergNEF. SoftBank could scale up to a capacity of several GWh, Bloomberg News reported last month.

The batteries will be used to help power the AI data centres that SoftBank is developing. The company also plans to provide them for grid applications, factories and other industrial and residential uses, it said. Over the medium term, SoftBank will also look to expand into global markets.

Under the plan, SoftBank will set up two ventures: AX Factory to serve as a hub for AI data centre operations and hardware manufacturing, and GX Factory that will serve as a manufacturing hub for next-generation batteries, solar panels and related products. The company aims to generate an annual revenue of over 100 billion yen (S$808 million) through its new battery business by fiscal 2030.

Cosmos will help with the development of safer battery cells, using its zinc-halogen technology, while DeltaX has expertise in high-energy-density designs.

The new venture highlights SoftBank CEO Junichi Miyakawa’s long-term strategy to transform the telecom into an AI enabler. SoftBank is also working to upgrade its nationwide mobile networks to better meet the needs of AI devices, including warehouse robots.

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The SoftBank unit’s foray into battery manufacturing is also in line with founder Masayoshi Son’s ambitions to carve out a bigger role for himself and SoftBank in the global AI race. BLOOMBERG