Toyota is deepening its investment in Joby Aviation with an additional $500 million, a move aimed at accelerating the development and commercial production of Joby's electric air taxi. The investment will be made in two equal parts, with the first closing by the end of 2024 and the second in 2025, subject to regulatory approvals and certain conditions. This latest round brings Toyota's total investment in Joby to $894 million.
The partnership between the two companies is not new. Since 2019, Toyota has provided both financial backing and operational support to Joby, integrating elements of its famed Toyota Production System into the development of Joby’s aircraft. Engineers from Toyota have worked closely with Joby in California, contributing to manufacturing methods, tooling design, and process planning.
The new funding is expected to support Joby's progress in certifying its electric vertical takeoff and landing (eVTOL) aircraft with the Federal Aviation Administration (FAA) and transitioning to full-scale commercial production. Joby has already rolled out its third aircraft and recently broke ground on a new facility that will more than double its manufacturing footprint.
“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “The knowledge and support shared by Toyota have been instrumental in Joby’s success, and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”
Joby is moving steadily toward certification, with its latest milestone confirming that its aircraft type certification process is more than one-third complete, as of August 2024. The certification is a crucial step for Joby as it aims to commercialize its air taxis, which are being positioned as a sustainable solution to alleviate congestion and mobility challenges in urban environments.
Tetsuo Ogawa, Operating Officer at Toyota Motor Corporation, emphasized the importance of this next phase. “With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Ogawa. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
Toyota's investment also aligns with the company's broader strategy of transforming from an automobile manufacturer into a comprehensive mobility provider. This shift, rooted in the ambitions of its founding family, is led by current Chairman Akio Toyoda, who has frequently spoken of realizing the dream of air mobility.
Beyond its financial investment, Toyota has committed significant human resources to the partnership. Engineers from Toyota have been involved in developing powertrain and actuation components for Joby’s aircraft, as well as collaborating on long-term supply agreements.
With this partnership, Joby is aiming to position itself as a leader in the nascent eVTOL market, a space that continues to attract interest and investment from automakers and aerospace giants alike.
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