•Sakai site targets AI battery production by 2027
•Non-lithium batteries cut supply chain risks and safety concerns for AI data centre power infrastructure
The fact
SoftBank will convert a former Sharp LCD factory in Sakai, Osaka, into a battery manufacturing site for AI data centre power supply. Mass production of zinc-halogen batteries, developed with Cosmos Lab, is planned for fiscal 2027. The non-lithium chemistry uses water-based electrolytes to improve safety and reduce reliance on critical mineral supply chains. The business targets over ¥100bn in annual revenue by FY2030.
The assessment
SoftBank integrates energy storage into AI infrastructure rather than relying on external grid supply. The model combines battery manufacturing, storage deployment and AI-driven demand forecasting into one operational stack. For data centre operators facing power constraints, it demonstrates how AI workloads are pushing infrastructure providers to control energy supply chains end-to-end. The non-lithium approach also reduces exposure to lithium price volatility and thermal safety risks.
What to watch
Whether zinc-halogen chemistry achieves GWh-scale manufacturing by 2027, and whether SoftBank's integrated energy-control model extends beyond its own data centres to other Japanese operators facing similar power constraints.
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