Toyota increases its investment in Joby Aviation to support the certification and production of its electric air taxi, cementing its shared vision of sustainable air mobility.
Toyota Motor Corporation has announced an additional investment of US$500 million in Joby Aviationa company dedicated to the development of electric air taxis for commercial passenger transportation services. This new capital aims to support the certification and production of Joby aircraft, reaffirming the commitment of both companies to transform the future of sustainable air mobility. With this injection of funds, Toyota strengthens its collaboration with Joby Aviation, which has spanned more than seven years.
Investment Agreement
Specifically, this financing aims to accelerate the certification and commercial production of the Joby air taxi, an all-electric aircraft that promises to revolutionize urban transportation and reduce traffic congestion. The investment agreement will be completed in two stages, subject to approval by regulatory authorities and the conclusion of strategic agreements between both companies.
The first phase of the investment is scheduled to close this year, while the second will take place in 2025, once the terms of the strategic alliance focused on commercial manufacturing are formalized. With this contribution, Toyota’s total investment in Joby will reach $894 million, a significant support that demonstrates the Japanese automobile giant’s interest in diversifying its operations towards air mobility.
JoeBen Bevirt, founder and CEO of Joby Aviation, highlighted the importance of this partnership: “Toyota’s investment builds on nearly seven years of collaboration between our companies. The knowledge and support shared by Toyota has been critical to our success, and we look forward to deepening our relationship as we realize our shared vision for the future of air transportation.”.
Joby Aviation’s Progress Toward Commercialization
Joby Aviation has made significant progress towards commercializing its air taxi. The company recently completed construction of its third prototype at its pilot plant in Marina, California and is expanding its facilities to double its production capacity.
Added to this is the constant progress in the certification process: in August 2024, Joby reported that it has completed more than a third of a quarter of the five steps required for type certification, bringing the company one step closer to commercial production.
Toyota and its vision of air mobility
Toyota’s commitment to Joby Aviation is not an isolated case, but part of a broader effort to position itself as a leader in mobility solutions. Tetsuo “Ted” Ogawa, chief operating officer of Toyota Motor Corporation, reaffirmed the company’s commitment to the project: “With this additional investment, we are excited to see Joby certify its aircraft and move toward commercial production. We share the vision that sustainable flight will be key to alleviating current mobility challenges”.
Toyota’s investment and technical support reflects the vision of its founder, Kiichiro Toyoda, and his successors, including current President Akio Toyoda, to achieve a future of comprehensive mobility that encompasses both land and air.
Since 2019, Toyota has invested not only in capital but also in human resources to help Joby implement the Toyota production system, known for its efficiency and high quality, into the manufacturing of electric aircraft. Toyota engineers work alongside the Joby team in California, optimizing production processes and developing manufacturing tools and methods.
In 2023, both companies signed a long-term agreement for Toyota to supply key powertrain components and actuators for the production of the Joby air taxi. This alliance not only strengthens the project in the short term, but also establishes a long-term strategic relationship for both parties.
The impact of air mobility on the future of transportation
The partnership between Toyota and Joby Aviation marks an important milestone on the path to commercial air mobility. Electric air taxis promise to transform the way people get around in dense urban environments, providing a fast and sustainable alternative to traditional ground transportation.
This type of vehicle has the potential to decongest traffic in cities and reduce carbon emissions, helping to address some of today’s most persistent mobility problems.
For Toyota, the investment in Joby represents a natural extension of its diversification strategy into a mobility solutions provider beyond automobile production. With the automotive industry facing challenges such as the transition to electric and autonomous vehicles, Toyota’s focus on air mobility aligns with its vision for the future and its goal to stay at the forefront of mobility innovation.
Source: geeksroom.com
