SoftBank Corp. is entering the battery business. The company’s mobile unit announced it will convert a 440,000-square-meter factory in Sakai, Osaka-acquired for about $676 million-into a battery cell production facility to power its growing fleet of AI data centers.
Production is set to begin in fiscal year 2027, with mass production capacity targeted by fiscal year 2028 and full capacity around 2031. SoftBank has not disclosed the battery chemistry yet, leaving open questions about cost and competitiveness against established manufacturers like CATL or Panasonic.
The move aligns with SoftBank’s role in the Stargate initiative, a $500 billion AI infrastructure project, and leverages its existing solar energy capabilities exceeding 3 gigawatts. The company may also offer battery services to other Japanese firms.
SoftBank carries approximately $135 billion in debt, making this capital-intensive venture a notable risk. However, this is an infrastructure play-no blockchain or crypto component despite SoftBank’s history of crypto-adjacent investments through its Vision Fund.
Investors should watch for the battery chemistry announcement, which will signal whether SoftBank is aiming for cost efficiency or cutting-edge performance, and how it stacks up against established manufacturers.