SoftBank Launches Gigawatt-Hour Battery Business Targeting JPY 100 Billion in Revenue by FY2030

SoftBank has launched a Japan-based battery business aimed at building next-generation power infrastructure to support the rapidly increasing electricity demand driven by AI adoption. The strategy will follow an end-to-end approach covering development through manufacturing, producing innovative battery cells and Battery Energy Storage Systems with advanced technologies. SoftBank is targeting annual revenue of over JPY 100 billion from its domestic battery business by the fiscal year ending March 2030, marking one of the largest dedicated commitments by a Japanese telecommunications group to clean energy infrastructure.

 

Manufacturing Plans and Production Timeline

 

SoftBank will utilise the AI Data Center it is developing on the former Sharp Corporation factory site in Sakai City, Osaka Prefecture as a core hub for the Osaka Sakai AI Data Center, the AX Factory and the GX Factory. At the GX Factory, SoftBank plans to begin manufacturing battery cells and energy storage systems from the fiscal year ending March 2028 with the aim of achieving mass production on a gigawatt-hour-per-year scale by around fiscal year 2028. The production timeline places the company among the most ambitious new entrants to the battery manufacturing sector in Japan.

The integrated approach of co-locating data centre, AI compute and battery manufacturing operations at a single site creates structural efficiencies in power supply, logistics and operational management. The Sakai location also leverages existing industrial infrastructure inherited from the former Sharp facility, accelerating the timeline for bringing new capacity online. This combination of strategic location, vertical integration and ambitious scale positions the business as a meaningful contributor to Japan's domestic energy infrastructure.

 

Partnership with COSMOS LAB on Battery Cells

 

For battery cell development, SoftBank is collaborating with COSMOS LAB to jointly develop innovative battery cells that combine highly safe and non-flammable characteristics with superior energy storage performance. COSMOS LAB's zinc-halogen batteries use pure water as the electrolyte, which eliminates fire risks associated with the currently dominant lithium-ion battery chemistry. SoftBank and COSMOS LAB aim to establish technology for mass production at an early stage with the goal of commencing mass production around fiscal year 2027.

The innovative battery cells are described as the world's first to integrate the technologies of two next-generation battery chemistries, using halogen-based material for the cathode and zinc for the anode. The design offers charge-discharge characteristics with minimal energy loss while achieving energy efficiency equal to or greater than lithium-ion batteries. Because the cells do not use flammable organic electrolytes, the risk of ignition does not arise in principle due to the underlying structure, providing a significant safety advantage in applications such as data centres, urban infrastructure and residential installations.

 

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DeltaX Collaboration on Energy Storage Systems

 

For energy storage system development, SoftBank is collaborating with DeltaX to develop and manufacture an energy storage system that achieves world-class energy density. DeltaX's Cell Connecting System design and Cell to Pack technology make it possible to maximise the performance of each individual battery cell, and applying these technologies to next-generation cells is expected to deliver further improvements in storage performance. DeltaX has already achieved a storage capacity of 5.37 megawatt hours in a standard containerised lithium-ion battery BESS and aims to achieve comparable or greater capacity using the innovative new battery cells.

SoftBank will integrate an energy management system equipped with AI-based power demand forecasting capabilities developed through its existing electricity business. The combination of advanced cell technology, optimised packaging design and AI-driven energy management is intended to deliver world-leading performance characteristics. By incorporating proprietary demand forecasting, the system can optimise charging and discharging in response to electricity demand patterns and renewable energy generation levels.

 

Strategic Drivers Behind the Investment

 

The battery business is being launched in direct response to rising power demand associated with AI infrastructure deployment, which is reshaping electricity markets across Japan and globally. AI data centres require significant volumes of firm, reliable power, and battery storage plays a critical role in providing that reliability while supporting integration of renewable generation sources. By building battery manufacturing capability alongside its data centre infrastructure, SoftBank is creating a vertically integrated platform that addresses both compute and energy requirements simultaneously.

The strategy also responds to Japan's broader policy emphasis on supply chain resilience and domestic technology leadership in critical industries. Key raw materials such as halogen and zinc can be procured locally in Japan, strengthening domestic supply chain security and reducing dependence on imported materials that have characterised lithium-ion battery production. This procurement advantage aligns with national priorities around economic security and industrial competitiveness in clean energy technologies.

 

Deployment Plans and Market Applications

 

SoftBank plans to deploy the Japan-produced batteries first at its large-scale AI data centres, providing the company with direct internal demand to validate the technology and support initial production scale. The batteries will then be provided sequentially for grid applications in Japan, factories and other industrial uses, and residential applications. This staged deployment approach allows the company to build operational experience across diverse use cases before pursuing international expansion.

Medium-term plans include expansion into global markets, positioning the business to compete with established battery manufacturers in Asia, Europe and North America. The combination of differentiated technology, integrated AI-based energy management and Japan-based production gives the business a distinctive market positioning. Targeting the global market also provides scale opportunities that would not be available from the domestic Japanese market alone.

 

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The Energy Storage Market Context

 

Battery energy storage systems are becoming critical infrastructure as renewable energy adoption expands and electricity supply and demand variability increases. Globally, BESS deployment has accelerated rapidly in recent years, supporting both grid stability and integration of variable renewable resources such as solar and wind. The combination of falling costs and rising deployment is creating a substantial market opportunity that is expected to grow significantly through the remainder of the decade.

SoftBank's entry brings additional manufacturing capacity to a market where Asian producers, particularly in China and South Korea, have established strong positions. The competitive dynamics will depend on the relative performance characteristics, cost positions and supply chain advantages of different chemistries and manufacturing approaches. Differentiated chemistries such as the zinc-halogen technology offer potential advantages in markets where safety, environmental footprint and material sourcing are increasingly important purchase criteria.

 

Outlook for Japanese Energy Infrastructure

 

The SoftBank initiative reflects a broader trend in which Japanese industrial groups are committing significant capital to clean energy and storage technologies as part of national energy security and decarbonisation strategies. As Japan continues to navigate its energy mix transition and the growing electrification of industry and digital infrastructure, domestic battery manufacturing capacity is becoming increasingly strategic. The combination of advanced cell chemistry, integrated AI management and Japan-based production positions SoftBank as a potentially significant player in this emerging segment.

Whether SoftBank can achieve its JPY 100 billion revenue target by fiscal year 2030 will depend on the pace of technology maturation, manufacturing scale-up and customer adoption across multiple end-use segments. Sustained execution would establish the company as a meaningful new entrant in the global battery manufacturing landscape. The initiative also reinforces the convergence of AI infrastructure investment with clean energy technology development, a pattern that is increasingly defining strategic positioning across the technology sector globally.

 

Source: SoftBank Corp