Toyota to Invest Additional $500 Million in Air Taxi Firm Joby Aviation.

Toyota, Japan / Santa Cruz, CA - Toyota Motor Corp (7203.T) plans to invest $500 million in electric air taxi developer Joby Aviation (JOBY.N), bringing its total investment to $894 million.

The investment will be made in two equal tranches of $250 million each, with the first expected to close later this year and the second in 2025, subject to regulatory approvals and other conditions.

Toyota's investment aims to support the certification and commercial production of Joby's electric vertical take-off and landing (eVTOL) aircraft. 

According to the joint statement, the companies plan to establish a manufacturing alliance for the first phase of commercialization.

Joby has been making progress toward commercialization. 

It recently completed its third aircraft from its pilot production line in Marina, California. 

The company has also broken ground on an expanded facility that will double its manufacturing footprint.

In August 2024, Joby confirmed that the fourth of five stages of the type certification process is now more than one-third complete on the Joby side.

The collaboration between Toyota and Joby, which began nearly seven years ago, has involved knowledge sharing and support from Toyota, including expertise in the Toyota Production System. 

Toyota engineers are working alongside Joby's team in California. 

In 2023, the companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for Joby's aircraft production.

"Today's investment builds on nearly seven years of collaboration between our companies," said JoeBen Bevirt, founder and CEO of Joby Aviation. "The knowledge and support shared by Toyota has been instrumental in Joby's success."

Tetsuo "Ted" Ogawa, Operating Officer of Toyota Motor Corporation, said, "With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production."

The investment will be made in cash for common stock, subject to standard regulatory approvals and other conditions.

Joby Aviation is developing an all-electric air taxi for commercial passenger service. 

It intends to operate it as part of a fast, quiet, and convenient service in cities around the world.