In a bold move that signals a shift in the future of transportation, Toyota Motor has announced a significant investment of $500 million in Joby Aviation, a pioneering electric air taxi company. This latest funding push brings Toyota’s total investment in Joby to an impressive $894 million, solidifying its position as the company’s largest external shareholder.
Joby Aviation is at the forefront of developing electric vertical takeoff and landing (eVTOL) aircraft, which are seen as a potential solution to urban mobility challenges. These vehicles, often referred to as “flying taxis,” combine the vertical takeoff capabilities of helicopters with the efficient cruising of fixed-wing aircraft.
The investment from Toyota will be delivered in two equal installments of $250 million, with the first expected to close later this year. This financial backing is part of a broader strategic alliance focused on the commercial production and certification of Joby’s innovative aircraft.
JoeBen Bevirt, founder and CEO of Joby, expressed enthusiasm about the deepening relationship with Toyota. “The knowledge and support shared by Toyota have been instrumental in Joby’s success,” Bevirt stated. He emphasized the shared vision between the two companies for the future of air travel.
Toyota’s commitment to Joby goes beyond mere financial support. The automaker’s engineers are working side-by-side with Joby’s team at their manufacturing and flight test center in California. Additionally, Toyota is providing guidance as Joby prepares for large-scale production at a newly acquired facility in Ohio. The ambitious plan is to manufacture over 500 aircraft annually at this site as early as next year.
The collaboration between the two companies has been ongoing for nearly seven years, starting with an initial investment from Toyota Ventures. Last year, they signed a long-term agreement for Toyota to supply key powertrain and actuator components for Joby’s production aircraft, further cementing their partnership.
Joby’s air taxi design has made significant progress in the Federal Aviation Administration (FAA) certification process. The company anticipates beginning for-credit evaluations next year, a crucial step towards commercial operations. Joby aims to start ferrying customers as early as 2025, pending FAA approval.
The investment in Joby aligns with Toyota’s broader strategy of electrifying transportation. Ted Ogawa, CEO of Toyota Motor North America, stated, “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
This move by Toyota is part of a growing trend of automakers showing interest in the eVTOL sector. For instance, Stellantis, the parent company of Chrysler, has made significant investments in Archer Aviation, another player in the air taxi market.
The potential for eVTOL aircraft extends beyond just urban transportation. Airlines are exploring the use of these battery-powered vehicles to offer passengers quick transport to and from airports or for short trips between cities, providing a way to bypass ground traffic congestion.
As the race to dominate the skies heats up, Joby Aviation, backed by Toyota’s substantial resources and manufacturing expertise, appears well-positioned to lead the charge in this exciting new frontier of transportation. With the promise of quiet, emissions-free air travel on the horizon, the future of urban mobility may soon be taking flight.
