Toyota Motor Corporation announced an additional investment of $500 million in Joby Aviation, an electric flying car startup. This funding aims to support Joby's efforts to certify its electric vertical takeoff and landing (eVTOL) aircraft and expedite the commercialization process. Tetsuo “Ted” Ogawa, President and CEO of Toyota Motor North America, expressed optimism about the certification and commercial production of Joby's aircraft with the new investment.
The investment will be disbursed in two parts, with the first tranche this year and the second in 2025. This brings Toyota's total investment in Joby to $894 million. Back in January 2020, Joby secured $590 million in its Series C funding round, with Toyota contributing $394 million.
Toyota and Joby have been collaborating for nearly seven years. They have established a pilot production line in Marina, California, leveraging Toyota's manufacturing expertise. As part of a long-term agreement signed in 2023, Toyota will supply key powertrain and drive components for Joby's aircraft.
Joby plans to have four aircrafts undergoing flight tests by the end of the year as part of the Federal Aviation Administration's certification process, which involves five stages. Joby is currently in the fourth stage, focusing on aircraft testing.
This trend of investments in the eVTOL industry is evident among other automakers as well. In August, Stellantis reached a preliminary agreement with Archer Aviation to cover up to $370 million in labor-related costs to support Archer's production expansion. Earlier this year, Hyundai's subsidiary Supernal unveiled the S-A2 eVTOL aircraft concept and aims to conduct initial test flights of its electric air taxis by year-end. Additionally, Mercedes-Benz and Geely have also invested in Germany's Volocopter.
