(Source – cnbc.com)
Toyota Motor Corporation announced on Wednesday that it will invest an additional $500 million in Joby Aviation, further strengthening its commitment to the electric air taxi startup. This new investment is aimed at supporting the certification and commercial production of Joby’s innovative electric vertical takeoff and landing (eVTOL) aircraft. With this contribution, Toyota’s total investment in Joby exceeds $894 million, underscoring its belief in the future of urban air mobility.
Toyota and Joby Deepen Strategic Partnership
The new $500 million investment builds on a longstanding strategic partnership between Toyota and Joby Aviation. Toyota’s latest financial backing will be provided in the form of cash for common stock, with the first portion set to close later in 2024 and the second tranche to follow in 2025. The collaboration between the two companies is focused on scaling up the commercial manufacturing of Joby’s eVTOL aircraft, which are designed to revolutionize urban transportation by offering quick, quiet, and sustainable flights.
As Joby continues to move toward certification and commercialization of its electric air taxis, the company has also expanded its production capacity. Recently, Joby broke ground on a new manufacturing facility in California, further accelerating its readiness for large-scale production. Both Toyota and Joby view this partnership as critical in the development of a new generation of air transportation.
“We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges,” said Ted Ogawa, CEO of Toyota Motor North America. Joby CEO JoeBen Bevirt echoed this sentiment, noting that the new investment “further cements Toyota’s incredible collaboration with Joby” as both companies aim to shape the future of transportation.
Toyota, already Joby’s largest external shareholder, has long been involved in the company’s development. The automaker’s engineers are working closely with Joby’s team in California to support aircraft design and production. The two companies signed a long-term agreement for Toyota to supply key powertrain components for Joby’s air taxis, ensuring that both firms are heavily invested in the future success of this cutting-edge technology.
Growing Interest in Urban Air Mobility
The global race to develop electric air taxis is heating up, with automakers, airlines, and startups alike vying for a share in this emerging market. eVTOL aircraft are viewed as a solution to urban congestion, offering a new mode of transportation that can bypass traffic by flying travelers to airports or between cities for short-distance trips. However, hurdles such as regulatory approval and public acceptance remain significant challenges for the sector.
Toyota is not the only automaker betting on the future of air mobility. In July, Stellantis, the parent company of Chrysler, announced a $55 million investment in Archer Aviation, another eVTOL manufacturer. Meanwhile, airlines are also getting involved. Delta Air Lines made a $60 million investment in Joby Aviation in 2022, securing a 2% equity stake in the company. Delta’s partnership with Joby aims to offer air taxi services to ferry passengers to and from airports in major cities like New York and Los Angeles, with an initial goal of launching service in 2024.
Joby CEO JoeBen Bevirt remains optimistic about the timeline for deployment, telling Reuters that the company is “definitely targeting the next few years” for the rollout of its electric air taxis. While challenges lie ahead, Toyota’s ongoing support will be instrumental in Joby’s efforts to bring electric air transportation closer to reality.
With investments from major players like Toyota, the future of urban air mobility seems promising, signaling a new chapter in how we move through cities and beyond. As eVTOL aircraft move closer to commercialization, Joby and Toyota’s partnership will play a pivotal role in shaping this next evolution of transportation.
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