Toyota recently announced on its blog that it has invested $500 million in Joby Aviation, a California-based startup that is working on creating electric air taxis. With this most recent investment, Toyota has invested an overall $894 million in the company. In 2020, the company received a $394 million capital infusion.
By completing the Type 2 certification process with the US Federal Aviation Administration (FAA), Joby Aviation will be able to commercialize its electric vertical takeoff and landing (eVTOL) aircraft. This is the main goal of the funding. With plans to begin commercial air taxi service by 2025, the company is presently in the fourth of five certification stages.
In addition, Joby Aviation has started enlarging its manufacturing facilities to more than double its output capacity. It also recently unveiled its third prototype aircraft from its pilot production line in Marina, California.
Toyota plans to close the two equal tranches of its investment later this year and in 2025, respectively. Toyota plans to exchange the money for cash in the form of common stock.
Beyond just providing financial support, Toyota is involved with Joby. Since 2019, Joby has benefitted from the Japanese automaker’s knowledge of the Toyota Production System, which has helped with planning, manufacturing techniques, and tooling design.
