SoftBank Group Corp.'s mobile unit is launching a venture in Japan to manufacture large-scale battery cells and energy storage systems [1].
This move addresses the critical power-consumption problems facing AI data centers as the adoption of artificial intelligence drives a surge in electricity demand [2, 5]. By securing its own hardware supply chain, SoftBank aims to stabilize the infrastructure required for massive AI workloads.
The company plans to establish one of Japan's largest production lines for large-scale batteries [3] at a former Sharp LCD factory in Sakai, Osaka [3, 4]. This facility will produce Battery Energy Storage Systems, and related AI computing hardware designed specifically for data center environments [1, 2].
According to reports, the battery business will operate on a gigawatt-hour scale [2]. This scale is intended to meet the immense energy requirements of modern AI processing, which often exceeds the capacity of existing power grids.
There are varying reports regarding the timeline for operational capacity. Some sources said SoftBank is preparing to manufacture batteries now [1]. However, other reports said that full production is targeted within five years, placing the completion date around 2031 [4].
The venture represents a strategic shift for the telecommunications arm, moving from service provision into the hardware manufacturing of critical energy infrastructure [1, 3].
“SoftBank is launching a venture in Japan to manufacture large-scale battery cells and energy storage systems.”
SoftBank's entry into battery manufacturing signals a shift in the AI race from software and chips to the physical constraints of power. By converting an existing industrial site into a gigawatt-hour-scale facility, the company is attempting to verticalize its AI stack. This strategy suggests that energy availability, rather than just compute power, is now the primary bottleneck for scaling artificial intelligence.
