Toyota takes off with $500 million investment in Joby Aviation
To propel electric air taxi production
Toyota Motor Corporation and Joby Aviation, a pioneering company specialising in electric air taxis, have signed a $500 million investment agreement to advance the commercial production of Joby’s electric air taxis. This move underscores the two companies’ shared ambition to reshape the future of air mobility.
The investment will be split into two equal tranches, subject to regulatory approvals and other conditions. The first tranche is expected to close by the end of this year, with the second slated for 2025.
The $500 million will bring Toyota’s total investment in Joby to an impressive $894 million. Toyota’s cash infusion will be made in exchange for common stock in Joby, marking a continued investment in the electric air travel sector.
Toyota’s engagement with Joby began through Toyota Ventures, the company’s early-stage venture capital arm. Toyota Ventures identifies and supports disruptive technologies and companies that can advance mobility solutions. Toyota’s earlier investments in Joby, totalling $394 million, provided a strong foundation for this latest funding.
Commercial manufacturing
As part of the investment agreement, Toyota and Joby will also finalise a strategic alliance focused on commercial manufacturing. The alliance aims to strengthen both companies’ production capabilities and accelerate the deployment of Joby’s air taxis in urban centres worldwide.
Watch the Toyota-Joby Aviation partnership video here:
The electric air taxis, which Joby plans to operate, will offer a fast, quiet, and convenient mode of transportation in cities. The aircraft will address the growing urban congestion and pollution challenges, providing a sustainable alternative to traditional ground-based travel.
In addition to this investment, Toyota continues to enhance its electrified vehicle portfolio. By 2025, Toyota’s new plant in North Carolina will begin producing automotive batteries for electrified vehicles. The company’s focus on sustainability is reflected in its product offerings, with over a quarter of the cars sold by Toyota in North America in 2023 being electrified vehicles—hybrids, plug-in hybrids, full electric, and fuel cell vehicles.
Strategic partnership
The strategic partnership between Toyota and Joby has evolved over seven years. Toyota provides valuable support through its expertise in manufacturing processes and technology.
JoeBen Bevirt, Founder and CEO of Joby Aviation, said: “The knowledge and support shared by Toyota have been instrumental in Joby’s success. We look forward to delivering on our shared vision for the future of air travel.”
Joby Aviation is making significant strides toward bringing electric vertical take-off and landing (eVTOL) aircraft to market. The California-based company recently rolled its third aircraft off its pilot production line in Marina, California.
Additionally, it has broken ground on a new manufacturing facility that will more than double its production capacity. In August 2024, Joby announced that it had completed more than one-third of the fourth stage in its type certification process, which is essential for bringing its aircraft to commercial service.
Comprehensive mobility company
Toyota’s investment reflects its long-term commitment to air mobility, a key element of its transformation from an automotive manufacturer to a comprehensive mobility company.
Tetsuo ‘Ted’ Ogawa, Operating Officer at Toyota Motor Corporation, stated: “We share Joby’s vision that sustainable flight will be central to solving today’s mobility challenges.”
Toyota’s commitment to air mobility extends beyond financial investment. Since 2019, the company has provided invaluable support to Joby through its deep knowledge of the Toyota Production System (TPS).
This expertise covers everything from process planning, manufacturing method development, and tooling design. Toyota engineers work closely with their counterparts at Joby, helping optimise production processes and ensure the aircraft’s scalability.
In 2023, Toyota and Joby formalised their partnership by signing a long-term agreement where Toyota would supply key powertrain and actuation components for Joby’s aircraft. This collaboration further solidifies Toyota’s position as a significant player in the emerging air mobility sector.
Through collaboration with Joby, Toyota reaffirms its commitment to leading the mobility revolution by integrating electric vehicles with cutting-edge air travel technology.
Toyota Motor Corporation is a global leader in vehicle development and manufacturing and has been at the forefront of innovation in sustainable transportation, including developing the Prius hybrid and the Mirai fuel cell vehicle.
Toyota has invested heavily in North America, employing more than 63,000 people and operating 12 manufacturing plants. By 2025, the company’s 13th plant in North Carolina will begin producing batteries for electrified vehicles.
Featured image: (L-R) Tetsuo ‘Ted’ Ogawa, Operating Officer at Toyota Motor Corporation and JoeBen Bevirt, Founder and CEO of Joby Aviation, signed the $500 million agreement at Toyota’s North American regional headquarters in Plano, Texas, on October 2, 2024. Credit: Toyota Motor Corporation
