Toyota is intensifying its commitment to the future of urban air travel by making an additional $500 million investment in Joby Aviation, a pioneering electric air taxi company. This strategic investment brings Toyota’s total financial backing of Joby to a substantial $894 million. The fresh injection of capital, combined with Toyota’s continued collaboration, demonstrates the Japanese automaker’s belief in the potential of air taxis as a future mode of urban transportation.
Strengthening a Vision for the Future of Air Travel
Joby Aviation, a California-based startup founded by JoeBen Bevirt in 2009, has been diligently working on developing electric vertical takeoff and landing (eVTOL) aircraft. These electric air taxis are set to redefine the future of urban mobility by offering faster and more efficient transportation within cities. Toyota’s latest investment builds on a seven-year partnership between the two companies and will play a crucial role in Joby’s efforts to launch a commercial air taxi service by 2025.
The funds are earmarked to support the final stages of FAA certification and ramp up the production of Joby’s air taxis. Joby is currently in the fourth stage of the five-step certification process, and its air taxi project is nearing the point where it can begin commercial operations. In parallel, Joby has been expanding its manufacturing capabilities, recently rolling its third aircraft off the production line and breaking ground on an expanded facility in Marina, California, which will more than double its production capacity.
Toyota’s Deepening Role in Joby’s Success
While Toyota’s financial contributions are significant, its involvement in Joby’s success extends beyond just money. Since its initial investment in 2019, Toyota has provided crucial expertise in production methods through its renowned Toyota Production System. This system, focused on efficiency and precision in manufacturing, has been a critical asset as Joby gears up for mass production. Toyota’s engineers have been working closely with Joby’s team in California, sharing insights on tooling design, manufacturing techniques, and planning.
In addition to expertise, Toyota has committed to supplying key powertrain and actuation components for Joby’s eVTOL aircraft. The long-term agreement signed in 2023 ensures that Toyota will remain a vital part of Joby’s supply chain as the company moves towards commercial production.
Looking Forward: Joby’s Commercial Ambitions
Joby’s goal of launching a fully operational air taxi service by 2025 is becoming increasingly feasible thanks to Toyota’s backing. The company has already gained visibility in the market with several high-profile milestones, including acquiring Uber’s air taxi division, Elevate, in 2020. This acquisition not only strengthened Joby’s position but also resulted in a further $75 million investment from Uber. Joby’s continued progress, combined with strategic partnerships and financial backing, has solidified its reputation as a leader in the emerging eVTOL market.
Toyota’s cumulative investment, now standing at nearly $900 million, is a clear indicator of its long-term vision to be a part of the urban air mobility revolution. This latest $500 million investment will be divided into two tranches, the first of which will be completed later in 2024, and the second in 2025.
Conclusion
Toyota’s expanded investment in Joby Aviation underscores the growing belief in air taxis as the future of urban transportation. The collaboration between the two companies, which blends Toyota’s manufacturing expertise with Joby’s innovative technology, sets the stage for a groundbreaking shift in how people travel within cities. With Joby aiming to launch its commercial air taxi service by 2025, Toyota’s investment is a powerful vote of confidence in the vision of a more connected and efficient future of air travel.