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Toyota Motor Corporation will invest an additional $500 million in Joby Aviation to support the certification and commercial production of Joby’s electric air taxis, advancing their shared vision of air mobility.
The investment, which will be made in two equal tranches, is subject to standard regulatory approvals and certain other conditions, the finalisation of collaborative and commercial agreements and, concerning the second tranche, the finalisation of terms related to a strategic alliance focused on commercial manufacturing and certain other conditions.
Joby Aviation is a California-based transportation company developing an all-electric, vertical take-off and landing air taxi, which intends to operate as part of a fast, quiet, and convenient service in cities worldwide.
The investment will bring Toyota Motor Corporation’s total investment in Joby to $894 million and be made in cash for common stock. The first tranche is targeted to close later this year, and the second in 2025. Further investment details are available via the companies’ regulatory filings with the SEC.
“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 Aviation Moves Forward
Joby continues to make significant progress towards commercialisation. Recently, it rolled its third aircraft off its pilot production line in Marina, California, and broke ground on an expanded facility that will more than double the Company’s manufacturing footprint. In August 2024, it was confirmed that the fourth of five stages of the type certification process is now more than one-third complete on the Joby side.
“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” said Tetsuo “Ted” Ogawa, who signed the agreement as the Operating Officer on behalf of Toyota Motor Corporation. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
Toyota’s additional investment reflects the continued aim of Toyota Motor Corporation’s founding family, starting with Kiichiro Toyoda and continuing to present-day Chairman Akio Toyoda, to realise the dream of air mobility for personal or daily travel as part of its transformation into a mobility company.
Since 2019, in addition to monetary investments, Toyota has been investing time and human resources to share its knowledge of the Toyota Production System 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.
Toyota’s relationship with Joby began with an initial investment made by Toyota Ventures, the company’s early-stage venture capital arm. Toyota Ventures explores and identifies disruptive technologies and companies for investment opportunities and supports portfolio companies. Toyota Motor Corporation subsequently completed investments totalling $394 million.
