On October 2, 2024,Toyota Motor Corporationannounced that it would be investing in Joby Aviation, Inc., a leading electric air taxi company, for a whopping half a billion dollars.
Both companies are dedicated to makingurban air mobilitya reality, and this investment brings us one step closer to that goal.
Toyota to Invest in Joby
If all the necessary regulatory approvals are obtained and agreement conditions are met, the $500 million investment by Toyota will be made in two installments of $250 million each; one at the end of this year, and the other in 2025.
The cash, which will be exchanged for common stock, will be put towards supporting thecertificationprocess, and scaling up the commercial production of these electric taxis.
Joby Aviation
Based in Santa Cruz, California,Joby Aviationwas founded in 2009 by JoeBen Bevirt, and specializes in the development of all-electric commercial passenger air taxis with vertical take-off and landing (eVTOLs).
Engineers at Toyota are now working closely with the Joby team at its California facility to implement the Toyota Production System (TPS) and share best practices in manufacturing, process development, and tooling design.
Joby’s eVTOLs
Joby began working on the prototype for these eVTOLs in 2015, and started gaining traction a couple of years later when they caught Toyota’s attention. Theseair taxisare designed to be quick, quiet, and super convenient, especially for commuters in urban and densely populated areas. More importantly, the taxis will emit zero emissions.
In 2020, Joby was the first eVTOL company to receive substantial FAA certification, which has led to partnerships with companies like Uber. The company expects their designs will be the first-ever air taxis to be delivered to customers.
Toyota, Joby Collaboration
This isn’t Toyota’s first investment in Joby; the companies have been working together for almost seven years, and Toyota has already previously invested $394 million in Joby. A long-term agreement was entered into by the two companies in 2023 for the provision of actuation and powertrain parts by Toyota for Joby’s air taxis.
In addition to providing funding, Toyota has also offered Joby a lot of time and expertise in production efficiency and manufacturing methodologies, human resources services, as well as the TPS training.
Image Credit:Toyota
