Toyota Motor Corp. is doubling down on its commitment to electric vertical takeoff and landing (eVTOL) air taxis.
Per an SEC filing, the automaker last week finalized a $250 million investment in air taxi developer Joby Aviation—the first of two equal tranches totaling $500 million, announced in October.
According to Joby, the funding will support certification and commercial production of its flagship model, which is designed to carry up to four passengers at speeds approaching 174 knots. The company is targeting a 2025 commercial launch in major cities such as New York in partnership with Delta Air Lines but must first obtain FAA type certification.
Separately, the pair signed an agreement that could allow Toyota to build, maintain, repair, and overhaul (MRO) Joby’s air taxi—and potentially even fly it in Japan. The collaboration would turn Joby’s largest investor into a critical strategic asset.
“We’re already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design,” said JoeBen Bevirt, founder and CEO of Joby, in a news release shared Wednesday. “This is an important next step in our alliance with Toyota to scale the promise of electric flight.”
Long Time Coming
Toyota’s relationship with Joby dates back to 2017, when Toyota Ventures made an initial investment in the young startup. The automaker itself invested $44 million the following year and $350 million in 2020, solidifying the arrangement. After completing the second $250 million tranche agreed in October, it will have poured nearly $1 billion into the company.
The collaboration goes beyond financial backing. According to Joby, Toyota has sent engineers to work side-by-side with its pilot production team in California, where they are streamlining manufacturing and designing parts such as powertrains and actuators. The automaker will also play a role in the design of its inaugural scaled production facility in Dayton, Ohio, which aims to churn out up to 500 air taxis per year.
Until now, the eVTOL developer lacked the firm assurances that competitor Archer Aviation received from Stellantis, its exclusive mass manufacturing partner. The new agreement changes that, tapping Toyota as Joby’s “preferred manufacturing partner”—among other provisions.
Doubling Down
According to the SEC filing, “preferred manufacturing partner” status would grant Toyota several privileges.
Most notably, it would allow Toyota to begin “low volume commercial manufacturing” after Joby receives FAA production certification. The agreement would not prevent Joby from building aircraft itself. But it would require the firm to turn over detailed data on vehicle performance, production and testing plans, and supplier and cost information for all components. Joby would further need approval to work with third-party suppliers, giving Toyota a chance to propose its own contracts.
In exchange, the automaker could procure the parts, property, and equipment needed to get production off the ground. Its personnel would support Joby’s certification efforts, and the partners would work together on product design and development—with Joby getting the final say.
Ultimately, the collaboration could go even further than Archer and Stellantis’ by making Toyota a Joby customer. The pair in November conducted an exhibition flight at the automaker’s facility in Japan, marking Joby’s first international flight. But the proposed arrangement would grant Toyota purchase rights to the air taxi to assemble and operate its own fleet. That’s notable because Joby, by and large, intends to fly its own aircraft.
The manufacturer would help Toyota secure the approvals needed to conduct a service trial by an unspecified date. It may also support other pieces of the operation, such as vertiports—electrified takeoff and landing hubs—and pilot training. The collaboration further calls for Joby to train Toyota personnel on MRO and bars it from enlisting third-party MRO services without permission.
Despite the limitations on working with third parties, an extra boost from Toyota could help Joby keep pace with Archer, which earlier this month was picked as the official air taxi provider for the 2028 Summer Olympic Games in Los Angeles. Both companies hope to begin service as soon as this year. Joby, though, has the benefit of completing the first crewed eVTOL transition from hover to forward flight—a capability they will need to prove to the FAA.
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