Electric air taxi developer Joby Aviation has raised $250 million through a stock deal with Toyota Motor Corporation and reached a new agreement that could see the automotive giant eventually operate Joby’s aircraft.
The deal also defines Toyota’s role in assisting Joby with production and maintenance.
Toyota in October last year agreed to invest $500 million in Joby through two purchases of $250 million of Joby’s stock.
Santa Cruz, California-based Joby completed first round of that fundraising with Toyota on 22 May, issuing and selling to Toyota 49.7 million shares at $5.03 each, for $250 million in proceeds, securities filings show.
Toyota now owns 15.3% of Joby’s stock.
“The funding marks a significant milestone in strengthening the long-term collaboration between the two companies and supports their shared vision for the future of air mobility,” Joby says. “The investment is aimed at supporting certification and commercial production of Joby’s electric air taxi.”
In closing the first $250 million investment, Joby and Toyota also reached an amended collaboration agreement that describes a plan under which Toyota could eventually operate the air taxis in Japan, securities filings say.
Additionally, the deal expands “Toyota’s role as [Joby’s] preferred manufacturing partner”.
The companies “will collaborate with respect to various design and development initiatives, and will explore the establishment of an alliance to conduct low-volume commercial manufacturing”, the filing says.
Joby and Toyota will work together on projects related to reliability and production-efficiency improvements, “production line support” and “preparation for low-volume air taxi production”.
The deal restricts Joby’s ability to enter into agreements with other suppliers without first receiving Toyota’s consent.
“We’re already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimising design,” says Joby chief executive JoeBen Bevirt. “With this capital and Toyota’s legendary production expertise, we’re enhancing our ability to scale cutting-edge design and manufacturing to meet the demands of our partners and customers.”
Joby is working through the incredibly expensive and uncertain process of achieving certification of its in-development electric air taxi.
