The acclaimed Japanese automobile manufacturer made another power play into aviation. Toyota is slated to invest a significant amount of money into a California-based startup towards the production of electric-powered air taxis.

Toyota Adds Some Spark

American electric vehicle company Joby Aviation, Inc. has announced in a press release that the Toyota Motor Corporation is pledging $500 million. This money will primarily go into the production of new electric vertical takeoff and landing (VTOL) aircraft. The press release cites that both companies share a mutual interest in the direction air mobility should go in the future.

To make the deal official, Toyota President and CEO Ted Ogawa and Joby CEO Joe Ben Bevirt met at Toyota's North American headquarters in Plano, Texas to formally sign an agreement in front of members of the media.

The $500 million investment will consist of "two equal tranches". The first tranche will come later this year, while the second will take place at some point in 2025.

Toyota has already invested hundreds of millions into Joby last year towards the supply of powertrains and other components. Ogawa also joined the company's Board of Directors on July 1, 2023 . The press release states that Toyota's total investment in Joby will increase to $894 million with this new development.
 

Bevirt had this to say during the event:
 

“Today’s investment builds on nearly seven years of collaboration between our companies...The knowledge and support shared by Toyota has 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.”
 

Ogawa also shared his thoughts on the new investment towards Joby:

“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production...We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
 

Joby has inched closer to obtaining certification for its eVTOL air taxis, having reached the fourth stage of five of the type certification process last August. Joby is currently on track to produce one eVTOL air taxi per month by the end of the year, and will focus on increasing this monthly output in the future.

Toyota Ventures General Partner Jim Adler also sent an email to the press with these comments:

"Personal air mobility has been a Toyota dream starting with our founder and continuing to our chairman today. We are excited about the deepening Toyota/Joby relationship that will make this dream a reality."
 

Axios states that following the second tranche from Toyota in 2025 that the automaker will own more than 20% of Joby.
 

Earlier this year, Joby signed an agreement with Dubai's Road and Transport Authority to commence air taxi services in the United Arab Emirates starting in early 2026. The company is also looking to fly its aircraft in the UK, Australia, and Japan pending certification.