Toyota Motor Corp. (Aichi, Japan) and Joby Aviation Inc. (Santa Cruz, Calif., U.S.) announce that Toyota is investing an additional $500 million to support the certification and commercial production of Joby’s electric vertical takeoff and landing (eVTOL) vehicle, with the aim of realizing the two companies’ shared vision of air mobility.

The investment, which is being made in two equal tranches, is subject to standard regulatory approvals and certain other conditions, finalization of collaborative and commercial agreements and, with respect to the second tranche, the finalization of terms related to a strategic alliance focused on commercial manufacturing and other conditions. The investment, which brings Toyota Motor Corp.’s total investment in Joby to $894 million, is being made in the form of cash for common stock, with the first tranche targeted to close in late 2024 and the second in 2025. Further details of the investment are available via the companies’ regulatory filings with the SEC.

“The investment builds on nearly 7 years of collaboration between our companies,” says JoeBen Bevirt, founder and CEO, Joby Aviation. “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.”

Joby continues to make progress toward commercialization, recently rolling its third aircraft off its pilot production line in Marina, California, and breaking ground on an expanded facility in California that intends to more than double the company’s manufacturing footprint. In August 2024, it confirmed that the fourth of five stages in the type certification process is more than one-third complete on the Joby side.

Listen to CW’s latest podcast episode with Christopher Mims, Wall Street Journal and Joe Brennan, Joby Aviation

Since 2019, in addition to monetary investments, Toyota has been investing time and human resources to share the Toyota Production System via process planning, manufacturing method development and tooling design. Toyota engineers now work side by side with the Joby team in California, and, in 2023, the two companies signed a long-term agreement for Toyota to supply key powertrain and actuation components for the production of Joby’s aircraft.

Toyota’s relationship with Joby began through an initial investment made by Toyota Ventures, the early stage venture capital arm of Toyota that explores and identifies disruptive technologies and companies for investment opportunities and provides support for portfolio companies. Toyota Motor Corp. subsequently completed investments totaling $394 million.

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