Key Takeaways
(P1) SoftBank Group is moving to solve one of the biggest constraints in the artificial intelligence race—power—by building its own large-scale batteries, a venture it projects will generate more than $638 million in revenue by 2030.
(P2) The Japanese conglomerate’s telecom arm, SoftBank Corp., announced the new business on Monday, detailing a strategic partnership with South Korea-based battery specialist Cosmos Lab and AI firm DeltaX Co.
(P3) Production of next-generation zinc-halogen battery cells is slated to begin in the fiscal year ending March 2028 at SoftBank's factory in Sakai City, Osaka. The company is targeting mass production for the following year. The site will also house a major AI data center, creating a vertically integrated power and computing hub.
(P4) The move directly addresses the surging electricity demand from AI data centers, which is straining power grids globally. By securing its own energy storage supply, SoftBank aims to control costs and ensure stable power for its ambitious AI hardware push, positioning itself as a key player in the underlying infrastructure of the AI economy.
As tech giants like Nvidia, Amazon, and Google invest billions in AI chips and models, the underlying energy consumption has become a critical bottleneck. SoftBank's decision to enter the battery market is a direct response to this challenge. The company will work with Cosmos Lab on the zinc-halogen battery chemistry and collaborate with DeltaX to create high-performance battery designs tailored for the intense, constant power demands of AI workloads.
The choice of zinc-halogen technology suggests a focus on cost-effective, high-capacity storage, potentially offering an alternative to the lithium-ion batteries that dominate the market. While details on the specific performance metrics have not yet been disclosed, the goal is to create storage systems that can reliably power SoftBank's own data centers and be sold to other grid and industrial customers in Japan.
For investors, this venture represents a deeper integration of SoftBank's AI strategy, moving beyond software and services into the critical hardware and infrastructure layer. The more than $638 million revenue target by fiscal 2030 provides a concrete metric to track the success of this initiative. SoftBank Group (9984.T) shares, which have been closely tied to the company's AI investments, may see this as a long-term de-risking of its data center operations. The success of this venture could significantly lower operational costs and create a new, high-demand revenue stream, though it will require substantial capital expenditure in the near term.
This article is for informational purposes only and does not constitute investment advice.
