Toyota invests $500 million in US electric air taxi company Joby Aviation

Toyota Motor Corporation is investing another USD 500 million in American air taxi company Joby Aviation, which has been working on designing, making and certifying electric vertical take-off and landing craft (eVTOL) since it was founded in 2009.

Toyota’s investment is to be executed in two phases. The first phase of the cash-for-common-stock deal is expected to close later this year, and the second in 2025.

Toyota’s investment will be used to support certification and production of Joby’s electric air taxi, the companies said, bringing Toyota’s total investment in Joby to USD 894 million. 

“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO, Joby Aviation. “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.”

The Japanese automaker has also been sharing its design and manufacturing methods with Joby, with teams from the two companies working together.  

Toyota will supply key powertrain and other components for making Joby’s aircraft, as per an agreement signed between the two companies last year. 

Joby, one of the leading companies in air taxi research, acquired Uber’s Elevate start-up in 2020.  

However, for the technology to take off, getting certification remains a priority for Joby and Toyota.

Joby says it is nearly on course with fourth of a five-stage certification process before its aircraft can go into production.

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