SoftBank plans battery production at Osaka factory to power its own AI data centers

SoftBank Prepares to Manufacture Batteries for AI Data Centers

The plan is to develop a plant with a total battery capacity of several gigawatt hours, which would be among the largest in Japan, and initially use the batteries to support its own AI data centers before offering them to other Japanese companies. SoftBank Group Corp.'s mobile unit plans to transform part of its factory in Osaka into one of Japan's biggest production lines for large-scale batteries in an ambitious attempt at powering its own AI data centers. SoftBank Corp. aims to bring that production online within the next five years, according to people familiar with the matter. They asked not to be named as deliberations remain private. After SoftBank executives mulled different purposes for the plant in Sakai city, including robotics manufacturing, they decided to pursue energy. The Tokyo-based group led by Masayoshi Son is one of the world's foremost supporters of artificial intelligence, having committed hundreds of billions of dollars to investment in data centers, cloud services and bets on startups like OpenAI. Son has used the domestic mobile unit to build partnerships with companies and execute infrastructure projects to bolster his AI vision. SoftBank Corp. Chief Executive Officer Junichi Miyakawa is expected to announce the battery venture next month when the company is scheduled to disclose a new five-year business plan, the people said. While details of the plan remain in flux, Son has given his nod of approval on the initiative, one of them said. The decision is still subject to the telecom unit's board approval. A SoftBank representative declined to comment. Miyakawa wants Japan to boost its self-reliance in manufacturing as geopolitical tensions continue to disrupt supply chains across industries. If successful, the SoftBank battery venture will first be used to support its own AI data centers and later offered to other Japanese companies. The plan is to develop a plant with an estimated total battery capacity of several gigawatt hours, one of the people said. While that is much smaller than factories in China, which sometimes top 50 gigawatt hours, it would be among the largest in Japan, according to data from BloombergNEF. SoftBank is reviewing multiple new cell technologies that could be adopted for mass production, a decision on which has yet to be made. The new venture highlights Miyakawa's long-term strategy to transform the telecom unit into an AI enabler that runs data centers. SoftBank is also working to upgrade its nationwide mobile networks to suit the needs of AI devices, including warehouse robots. The push is in line with Son's ambitions to carve out a bigger role for himself and SoftBank in the global AI race. Read more about SoftBank's AI projects SoftBank Corp. to Develop AI Memory Chip With Research PartnersBloomberg Terminal SoftBank Telco Unit Eyes Further Support to Chip Startup RapidusBloomberg Terminal SoftBank Seeks Record Loan of Up to $40 Billion for OpenAI Stake SoftBank's Son Sees AI Running Households in a Few Years Masayoshi Son's Next Great Hope is Taking Nvidia's AI Crown The SoftBank telecom unit in 2025 acquired an LCD factory from Sharp Corp. for ¥100 billion ($630 million) to refurbish it into a data center. With floor space of about 840,000 square meters - enough to fit more than 100 soccer fields -- it has been under consideration as a multipurpose facility. Only a portion of that space is expected to be taken up by the data center, which could be scaled up to a capacity of 400 megawatts or more. First-stage development would bring the data center's capacity to 150 megawatts, slated to start operations later this year. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. Executives are studying different types of novel technologies for the batteries SoftBank would produce. The most commonly used tech is known as lithium iron phosphate (or LFP) batteries - popular for its safety and cost effectiveness - though SoftBank is looking to adopt a more advanced but nascent technology from home or South Korea to better compete against Chinese rivals. It isn't immediately clear if SoftBank has entirely ruled out lithium-based technologies. Chinese producers dominate the global market for lithium batteries used in electric vehicles and energy storage systems (ESS). China accounted for 64% of the ESS market and North America was second with a 16% share in 2025, according to a report published by SNE Research. READ: AI Needs So Much Energy It's Distorting US Power for Millions Battery storage demand is booming around the world as the technology becomes more affordable, often to help countries back up the rapid expansion of intermittent renewables. Among those driving demand for green energy are data center operators facing ever-greater electricity needs. Batteries could also help Japan unlock more wind and solar capacity, as renewables growth has been throttled by grid capacity constraints.

SoftBank prepares to manufacture batteries for AI data centers

SoftBank Group's mobile unit plans to transform part of its factory in Osaka Prefecture into one of Japan's biggest production lines for large-scale batteries in an ambitious attempt at powering its own artificial intelligence data centers. SoftBank Corp. aims to bring that production online within the next five years, according to people familiar with the matter. They asked not to be named as deliberations remain private. After SoftBank executives mulled different purposes for the plant in the city of Sakai, including robotics manufacturing, they decided to pursue energy. The Tokyo-based group led by Masayoshi Son is one of the world's foremost supporters of AI, having committed hundreds of billions of dollars to investment in data centers, cloud services and bets on startups like OpenAI. Son has used the domestic mobile unit to build partnerships with companies and execute infrastructure projects to bolster his AI vision.