Toyota to Invest $500 Million in Electric Air Taxi Firm Joby Aviation
In a significant move to bolster its presence in the emerging electric vertical take-off and landing (eVTOL) market, Toyota Motor Corporation has announced plans to invest an additional $500 million in Joby Aviation, a California-based start-up specializing in electric air taxis.
This new investment is part of Toyota's ongoing commitment to Joby Aviation, with which it has been collaborating since 2019. The total investment by Toyota in Joby Aviation will now amount to $894 million, following previous investments totaling $394 million.
Strategic Alliance and Manufacturing Support
The investment will be made in two equal tranches, with the second installment dependent on the finalization of terms for a strategic alliance focused on commercial manufacturing. This alliance is crucial as it involves Toyota sharing its expertise in the Toyota Production System, including process planning, manufacturing method development, and tooling design. Toyota engineers are already working closely with the Joby team in California to enhance manufacturing efficiency.
In 2023, Toyota and Joby signed a long-term agreement for Toyota to supply key powertrain and actuation components for the production of Joby's aircraft. This collaboration underscores Toyota's commitment to supporting Joby's mission to revolutionize urban air mobility.
Certification and Production Milestones
The new funding is aimed at supporting the certification and commercial production of Joby's eVTOL vehicle. Joby has made significant progress, having rolled out a third aircraft from its pilot production line in Marina, California, and breaking ground on an expanded facility that will more than double its manufacturing footprint. As of August 2024, Joby had completed more than a third of the fourth stage of the five-stage type certification process.
The collaboration between Toyota and Joby is built on nearly seven years of mutual support. 'Today's investment builds on nearly seven years of collaboration between our companies,' said JoeBen Bevirt, Joby Aviations 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'.
Market Impact and Future Outlook
The announcement of Toyota's additional investment has had a positive impact on Joby Aviation's stock, which rallied by 22% following the news. This investment not only reflects Toyota's confidence in Joby's technology but also highlights the growing interest in sustainable air travel solutions.
Toyota's investment in Joby Aviation aligns with its broader strategy to address mobility challenges through sustainable and innovative technologies. 'With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,' said Toyotas Tetsuo Ted Ogawa. 'We share Joby's view that sustainable flight will be central to alleviating today's persistent mobility challenges'.
The eVTOL market, which includes companies like Joby Aviation, is part of a larger trend towards electric aircraft, aiming to reduce environmental impact and enhance urban mobility.
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