With a $500 million investment, Toyota is teaming up with Joby Aviation to support the production and certification of the electric air taxi, promising to revolutionize commercial transportation
The Japanese automotive giant, Toyota Motor, is investing US$500 million in Joby Aviation, an American company developing electric air taxis.
This investment reinforces the commitment of Toyota in supporting the commercial launch of Joby's passenger transportation services, scheduled for next year.
The partnership between the two companies is seen as a significant step towards sustainable mobility, with a focus on innovative solutions to contemporary transport challenges.
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Structure of Toyota's investment in electric air taxi company
O investment will be carried out in two equal installments, subject to regulatory approval and other conditions, such as the finalization of commercial and collaborative agreements.
The second tranche, scheduled to be completed in 2025, is linked to the formalization of a strategic alliance focused on commercial manufacturing.
With this investment, Toyota's total investment in Joby Aviation will reach US$894 million. The investment will be made in cash for common shares, with the first tranche expected to be completed by the end of this year.
Long-standing collaboration
According to JoeBen Bevirt, founder and CEO of Joby Aviation, this new round of investment cements a collaboration that has lasted almost seven years between the two companies.
Toyota has been a crucial partner in the development of Joby's air taxis, contributing its expertise and support in a number of areas.
The partnership began in 2019 when Toyota Ventures, Toyota’s venture capital arm, made its first investment in Joby. Since then, Toyota has invested not only financially, but also with human capital and engineering know-how.
Toyota has been a key force behind Joby’s success, sharing its expertise in the Toyota Production System (TPS), process planning, manufacturing method development and tool design. Toyota engineers work side-by-side with the Joby team in California, actively contributing to the development and improvement of the company’s electric aerial vehicles.
Joby Aviation Progress
In recent months, Joby Aviation has made significant progress towards commercializing its electric air taxis.
The company recently rolled its third aircraft off the pilot production line in Marina, California, and began construction on a new facility that will expand its manufacturing capacity by doubling its current footprint.
In addition, Joby has made significant progress in the type certification process, one of the essential requirements for commercial launch. In August 2024, the company confirmed that the fourth of five phases of the certification process was more than a third complete.
This progress has been closely monitored by Toyota, which sees Joby as a strategic partner in its pursuit of sustainable air mobility solutions. Tetsuo “Ted” Ogawa, Chief Operating Officer of Toyota Motor Corporation, said Toyota is excited about the prospect of Joby certifying its aircraft and entering commercial production. For Toyota, air mobility can be a crucial answer to the persistent transportation challenges faced today, especially in congested urban areas.
Air Mobility and Toyota's Vision
Toyota's additional investment reflects the company's long-term vision of transforming itself from an automobile manufacturer to a mobility company, a dream that dates back to founder Kiichiro Toyoda and is continued by current president Akio Toyoda.
The company believes that personal air mobility will be a central element in the future of transportation, and sees Joby as a key part of that transformation.
Since the beginning of the partnership, Toyota has demonstrated its commitment to Joby's air mobility vision, not only with financial contributions, but also by providing key parts for the development of the company's vehicles.
In 2023, the companies entered into a long-term agreement for Toyota to supply critical propulsion and actuation system components for the production of Joby aircraft.
Toyota's investment in Joby Aviation is a clear example of how the automotive giant is diversifying its investments in mobility sustainable, expanding its operations beyond automobiles. The partnership between the two companies aims to accelerate the development of electric air taxis, which could revolutionize passenger transportation in the near future.