Toyota Motor announced on Wednesday that it will invest an additional $500 million in Joby Aviation to further support the certification and commercial production of Joby’s electric air taxis.
This new funding builds on the $394 million Toyota previously invested in the California-based company, solidifying their strategic partnership in the emerging urban air mobility market.
The investment will come in two stages: the first tranche of cash for common stock will close later in 2024, and the second tranche will follow next year.
Electric vertical takeoff and landing aircraft (eVTOL), like those Joby is developing, are seen as a key innovation in urban transport, though they still face significant regulatory hurdles before reaching commercial viability. Joby recently broke ground on an expanded facility in California as part of its efforts toward certification.
“We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges,” said Ted Ogawa, CEO of Toyota Motor North America. Toyota, already Joby’s largest external shareholder, will continue to work closely with the aviation company. “This will further cement their incredible collaboration with Joby,” said Joby CEO JoeBen Bevirt.
Toyota engineers have been working alongside Joby’s team in California, and the two companies signed a long-term agreement last year for Toyota to supply key powertrain and other components for Joby’s aircraft.
Joby is aiming to launch its air taxi service within the next few years, Bevirt told Reuters, as the company progresses toward making urban air travel a reality.