Toyota Motor Corporation has agreed to invest a further $500 million in eVTOL aircraft developer Joby Aviation. The funding, announced on October 2, will take the Japanese car maker’s total investment in Joby to $894 million and will be paid in two equal tranches later this year and then in 2025 as cash in return for common stock.
According to Toyota, the terms of the investment agreement cover plans for the two companies to establish joint manufacturing arrangements for Joby’s four-passenger electric aircraft. The new funding, which is subject to regulatory approval and finalizing the terms of the agreement, will directly support efforts to complete FAA type certification and start commercial manufacturing in time for deliveries to begin in 2025.
Joby recently completed manufacturing of a third production-conforming aircraft from its pilot production line in Marina, California. The company is building an expanded facility in California and also plans to have a larger factory in Ohio.
“Today’s investment builds on nearly seven years of collaboration between our companies,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “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.”
Toyota has assigned some of its engineers to work with Joby on various aspects of production preparations. In 2023, the companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for the Joby aircraft.
The automotive group’s initial investment in Joby was made by its venture capital division, Toyota Ventures. Subsequently, Toyota Motor Corporation has provided funding totaling $394 million so far.