Toyota increases its investment in air taxi company Joby Aviation by $500m

The investment will be used to support certification and production of Joby's electric air taxi. After the investment, Toyota will own about 22% of Joby's outstanding shares

Toyota is ramping up its commitment to the future of air travel by pouring an additional $500 million into Joby Aviation, bolstering the American air taxi firm's efforts to launch its commercial service.

The fresh injection of funds will be channelled towards achieving certification and kick-starting production of Joby's electric air taxi, as announced on Wednesday. This latest financial boost takes Toyota Motor Corporation’s total investment in Joby to a hefty $894m.

Following this investment, which will be delivered in two equal parts later this year and next, Toyota is set to hold approximately 22% of Joby's outstanding shares. "Today’s investment builds on nearly seven years of collaboration between our companies," JoeBen Bevirt, founder and chief executive of Joby Aviation, said.

"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 has also announced the recent completion of its third aircraft from the production line and revealed that as of August, it was progressing through the fourth of five certifications needed. In a move that extends beyond mere financial backing, Toyota has been actively contributing its expertise in design and manufacturing to the partnership.

The Japanese automotive giant has disclosed that its engineers are working closely with Joby's team at their California base. Last year marked another milestone in the partnership, with the signing of a long-term agreement that sees Toyota supplying essential powertrain components and other key elements for the assembly of Joby’s innovative aircraft.