Automotive manufacturer Toyota Motor Corporation is investing $500m into electric vertical takeoff and landing (eVTOL) company Joby Aviation to support the final stages of development on its electric air taxi aircraft.
The investment will be made in two equal tranches and is set to include a “strategic alliance” on commercial manufacturing, strengthening the existing relationship between the two manufacturers and adding to the $394m already invested by Toyota.
Joby CEO JoeBen Bevirt said: “Today’s investment builds on nearly seven years of collaboration between our companies.
“The knowledge and support shared by Toyota has 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’s first tranche of investment, to be made in the form of cash for common stock, is expected to close later this year while the second will close in 2025, subject to regulatory approvals.
The funding injection comes at a key time for Joby as it nears certification of its eVTOL aircraft, with the company claiming to be more than a third of the way through the second to last stage of the process.
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By GlobalDataJoby has also now built three eVTOL aircraft at its pilot production line in Marina, California and is building an expanded factory in the state to more than double its manufacturing capacity.
Ted Ogawa, who signed the deal as operating officer for Toyota, said: “With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production.
“We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.”
Joby has become one of the leading eVTOL manufacturers in the aviation industry as it appears likely to be one of, if not the, first to receive Federal Aviation Administration approval for its aircraft.
The manufacturer has completed a number of landmark events including the first electric air taxi flight through New York City and the first forward flight test of a hybrid hydrogen-eVTOL aircraft.
