Toyota Motor Corporation is planning to invest an additional $500 million into Joby Aviation as the start-up pushes to certificate and commercialise its electric air taxi as soon as next year.
Joby disclosed the incoming cash infusions on 2 October, specifying that Toyota will exchange two equal tranches of $250 million for shares of Joby’s common stock. The first payment will be delivered later this year and the second will arrive sometime in 2025.
Notably, finalisation of the second $250 million tranche includes terms related to a commercial manufacturing alliance between the companies.
“With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production,” says Tetsuo Ogawa, the operating officer who signed the deal on behalf of Toyota. “We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
The forthcoming transactions would raise Toyota’s total investments in Joby to $894 million.
Last year, the two companies signed a long-term agreement for Toyota to supply powertrain and actuator components for Joby’s production aircraft, and Toyota’s engineers have since worked alongside Joby’s team in California.
“Today’s investment builds on nearly seven years of collaboration between our companies,” says JoeBen Bevirt, Joby’s founder and chief executive. “The knowledge and support shared by Toyota have been instrumental in Joby’s success and we look forward to deepening our relationship as we deliver on our shared vision for the future of air travel.”
Santa Cruz-based Joby is in the fourth of five stages to secure Federal Aviation Administration type certification of its piloted, four-passenger electric vertical take-off and landing (eVTOL) aircraft. In March, Joby’s eVTOL became the first such aircraft to be issued final FAA airworthiness criteria.
The company says it is on track to clear certification in 2025 and launch passenger-carrying air taxi operations shortly thereafter. Competitor and fellow California start-up Archer Aviation is on Joby’s heels with its Midnight eVTOL, with Archer also seeking FAA certification on a similar timeline.
Joby is generally thought to hold the strongest cash position among US air taxi developers, which may prove pivotal as start-ups confront sky-high costs associated with certification and commercialisation of a new class of aircraft.
