Japan’s Toyota will invest an additional $500mn into New York-listed Joby Aviation, a company developing electric air taxis for commercial passenger services. The new cash is targeted at supporting certification and commercial production of Joby's electric vertical take-off and landing (Evtol) vehicle.
The investment will be made in two equal tranches. The second instalment will be dependent on the finalisation of terms of a strategic alliance focused on commercial manufacturing.
The cash will bring Toyota's total investment in Joby to $894mn and will be made in the form of cash for common stock. The first tranche is targeted to close later this year and the second in 2025.
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Toyota's relationship with Joby began through an initial investment made by Toyota Ventures, the firm’s early-stage venture capital arm. Toyota Motor Corporation subsequently completed investments totalling $394mn.
Since 2019, Toyota has also been sharing knowledge of its internal Toyota Production System with Joby via process planning, manufacturing method development and tooling design. Toyota engineers now work side-by-side with the Joby team in California. In 2023, the two companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for the production of Joby's aircraft.
Joby recently rolled a third aircraft off its pilot production line in Marina, CA, and has broken ground on an expanded facility in CA that will more than double its manufacturing footprint. By August 2024, it had completed more than a third on its side of the fourth of five stages of a type certification process.
"Today's investment builds on nearly seven years of collaboration between our companies," says JoeBen Bevirt, Joby Aviation’s founder and CEO. "The knowledge and support shared by Toyota has 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."
"With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production," says Toyota’s Tetsuo ‘Ted’ Ogawa. "We share Joby's view that sustainable flight will be central to alleviating today's persistent mobility challenges."
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